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Citigroup Eyes $3B+ Banamex IPO
26 Sep
Summary
- Citigroup plans IPO for Banamex aiming for over $3 billion.
- Major banks like BofA and Goldman Sachs are involved.
- The IPO is part of a larger strategy to exit international consumer banking.
Citigroup is reportedly assembling major Wall Street banks for a potential Initial Public Offering (IPO) of its Mexican unit, Grupo Financiero Banamex. The transaction is expected to raise more than $3 billion.
Citigroup is anticipated to lead the offering, with Bank of America, Goldman Sachs, and JPMorgan Chase also engaged in the process. The target for this listing is January, though details are still under discussion and could evolve.
This planned IPO is a key component of Citigroup CEO Jane Fraser's strategy to divest from consumer banking operations in several international markets. The bank previously sold stakes in Banamex, reducing its ownership to approximately 51%.
Further stake reductions are planned before the IPO, with the goal of bringing Citigroup's ownership below 50%. Banamex has also recently appointed a new chief executive, Edgardo del Rincon.
