Of course, Citigroup is already publicly traded. Instead, this IPO would see the banking firm spin off Banco Nacional de México, also called Banamex. This is the company’s “consumer, small business and middle-market banking operations in Mexico.”
Citigroup says that Banamex will continue to offer its normal services after the spinoff is complete. The company will also retain its 38,000 employees, art collection and historical buildings following the spinoff.
Jane Fraser, CEO of Citigroup, said the following about the IPO spinoff:
“After careful consideration, we concluded the optimal path to maximizing the value of Banamex for our shareholders and advancing our goal to simplify our firm is to pivot from our dual path approach to focus solely on an IPO of the business.”
Citigroup IPO Timing
According to Citigroup, the spinoff of Banamex will be completed in the second half of 2024. This has Citigroup expecting the IPO of its Mexico-based business to take place sometime in 2025.
Investors will note that Citigroup was previously trying to find a buyer for Banamex. The company sought to sell the business after buying it for $12.5 billion in 2001. However, Citi switched to the IPO plan after spending 16 months pursuing a sale.
C stock is down 3.3% as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.