RBS unit may raise $3.5 billion in top U.S. bank IPO this year
Citizens Financial Group Inc, the U.S. unit of Britain’s Royal Bank of Scotland (RBS.L), said its initial public offering was expected to raise as much as $3.5 billion, making it the biggest U.S. offering by a bank this year.
The company said the offering of 140 million shares was expected to be priced at between $23 and $25 each. At the top end of the range the company will be valued at $14 billion.
All the shares in the offering are being sold by RBS.
RBS said last year it would sell 20-25 percent of Citizens by the end of 2014 through a U.S. IPO as the bank faces pressure from British regulators to bolster its capital and sell off non-core assets.
Citizens, which provides retail and commercial banking services to about 5 million customers in the United States, intends to list its common stock on the New York Stock Exchange under the symbol “CFG”.
Citizens had $130.3 billion of total assets and more than 1,200 branches in 11 states across the New England, Mid-Atlantic and Midwest regions as of June 30.
Morgan Stanley, Goldman Sachs & Co and JPMorgan are the lead underwriters for the IPO.
(Reporting By Neha Dimri in Bangalore; Editing by Saumyadeb Chakrabarty)
Source: Reuters
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