STAFF at Virgin Mobile will bag free shares when it floats on the London Stock Exchange later this month.

The Trowbridge-based firm, which employs about 1,300 people in the town, will go public in a deal expected to value it at more than £1bn.

Nearly all staff will receive a free gift of shares.

Steven Day, spokesman for the company, said: "It is a share-based equivalent of a box of roses but it is going to be worth substantially more than that. The windfall of free shares is a one-off thank you for their work at the company."

The number of shares bagged by staff will depend on their length of service at the company and Mr Day said there will be other share-based incentive schemes in the future.

Virgin is expected to make about £250m from the listing, although it could be much more. It will have to give up to £100m of the proceeds to T-Mobile, which gave up its 50 per cent stake in Virgin Mobile in January.

Virgin Mobile will remain under the control of Sir Richard Branson, chairman of the Virgin Group. Only about 40 per cent of the company will be sold, meaning he can keep a firm hold of the reins.

He said: "In less that five years Virgin Mobile has grown from scratch to acquire more than four million customers.

"I am very proud of what the team has achieved so far and am confident that, following the IPO, Virgin Mobile will go from strength to strength."

Tom Alexander, Virgin Mobile's chief executive officer, said: "The flotation of Virgin Mobile is an exciting milestone for the company, its staff and shareholders."

Former British Airways director, Charles Gurassa, will become non-executive chairman.

Virgin Mobile, launched in 1999, is one of West Wiltshire's most successful companies with reported revenues of £442m in 2003.