8th Sep 2014 11:47
LONDON (Alliance News) - Royal Bank of Scotland Group PLC Monday launched the initial public offering of Citizens Financial Group Inc, at a price range valuing the US banking subsidiary at between USD12.88 billion and USD14 billion.
In a statement, RBS said it is planning to sell a quarter of Citizens' shares at a price range of between USD23 and USD25 per share. The bank has also granted a 30-day over-allotment option of up to an 21.0 million shares that may be sold in addition to the 140 million that constitute 25% of Citizens' equity.
RBS is selling off Citizens as it looks to bolster its capital position and focus on lending activities in the UK. The divestment continues the massive restructuring the banking group has followed since it received a bailout from the UK government in the wake of the financial crisis.
"We announced our intention to undertake an IPO of Citizens in February 2013 and today's launch is an important milestone for both RBS and Citizens. The planned divestment will significantly improve RBS's capital foundation and is a further important step in making RBS a strong and secure bank that continues to fully support the needs of its customers," Chief Executive Ross McEwan said in a statement.
Morgan Stanley & Co LLC and Goldman, Sachs & Co, are acting as joint global coordinators of the IPO, while JP Morgan Securities LLC is acting as joint book-running manager.
RBS shares were Monday quoted down 2.9% at 337.06 pence.
By Samuel Agini; [email protected]; @samuelagini
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