Citigroup targets over $3 billion Banamex IPO for January - Bloomberg

Citigroup is set to lead an initial public offering (IPO) of Mexico's Grupo Financiero Banamex, with the potential to raise over $3 billion, Bloomberg reported. Major Wall Street banks, including Bank of America, Goldman Sachs, and JPMorgan Chase, are also participating in the transaction. Citigroup and Banamex are aiming to list the company in January.

The banks are still determining the extent of Citigroup's stake they will sell before the IPO, with potential smaller sales occurring prior to the listing. Details of the IPO plans, which are still under discussion, could change, and more banks may join the group handling the offering. Citigroup Chief Executive Jane Fraser's strategy for withdrawing from consumer banking operations in various international markets includes this IPO.

Citigroup previously sold 25% of Banamex to Mexican billionaire Fernando Chico Pardo and another 24% to investors like General Atlantic and Blackstone, reducing its ownership to approximately 51%. The CFO of Citigroup, Gonzalo Luchetti, recently announced plans to further decrease Banamex ownership below 50% before the IPO. Banamex recently appointed Edgardo del Rincon, a former head of Banco del Bajio, as its new CEO.

A listing exceeding $3 billion would be a significant step in Citigroup's ongoing separation from its Mexican retail banking operations following a series of private stake sales.