UPDATE 2-Virgin Media to launch LSE secondary listing

* Listing set to become effective on Oct. 1

* Primary listing will remain on Nasdaq

* Not issuing new shares for London listing

* Shares on Nasdaq up 5.4 percent

(Adds quotes, share price)

By Kate Holton

LONDON, Sept 28 (Reuters) - Cable operator Virgin Media (VMED.O) said on Monday it would launch a secondary listing on the London Stock Exchange to widen its appeal to British and European investors.

The move, which will allow investors to buy the stock in sterling, sent its shares traded on the Nasdaq up 5.4 percent by 1620 GMT.

Virgin Media shares are likely to start trading in London from 0700 GMT on Oct. 1, following approval from Britain's Financial Services Authority and the London Stock Exchange, the company said.

Virgin Media, which conducts all its business in Britain, has been mulling a secondary London listing for some time.

It inherited its Nasdaq listing from cable firm NTL, which merged with two other companies and was rebranded Virgin Media.

"This is not a capital raising exercise," chief executive Neil Berkett told reporters. "We believe this will enhance our profile among the key financial audiences in the UK and in Europe."

Berkett said Virgin Media would not issue new shares as part of the London listing, but would allow existing shares to be bought and sold in sterling through the London market via depository interest notes.

Berkett said he had decided the time was right to launch the secondary listing following several quarters of "robust" trading despite the economic downturn, and support from British and European institutional investors.

Virgin Media said its primary listing would continue to be the Nasdaq. Less than 10 percent of Virgin Media investors are currently registered in Britain and Berkett said he would like to see that increase, as British investors were more likely to understand the company and the market.

Asked if the group would ever quit the Nasdaq, Berkett said Virgin Media had a long heritage in the United States but said they would review that decision one step at a time. (Reporting by Kate Holton; Editing by Dan Lalor)