Citigroup lines up $3bn+ Banamex IPO

Citigroup (C) is organizing an initial public offering of Mexico’s Grupo Financiero Banamex that could raise more than $3 billion. The planned transaction would mark a significant step in reshaping Citigroup’s ownership of the Mexican lender, shifting a substantial portion of the business into public markets.

Citigroup is expected to lead the offering and has lined up several major Wall Street institutions to participate. Bank of America (BAC), Goldman Sachs (GS) and JPMorgan Chase (JPM) are working on the transaction alongside Citigroup, forming a large bank syndicate for the potential deal.

The banks and Citigroup are targeting January for the Banamex listing. This timetable frames the next few months as a key preparation period for structuring the offering, engaging investors and determining the final deal size and stake to be sold.

People familiar with the matter indicate that plans remain under discussion and could still change. The timeline and transaction details, including the exact amount of equity to be offered, are being refined as the banks assess market conditions and Citigroup’s strategic priorities.

A central element of the preparation is how much of Citigroup’s remaining stake in Banamex will be sold before and during the IPO. The banks are assessing how much of this stake could be placed in the market ahead of the listing, and smaller stake sales may occur before the public offering itself.

Earlier this month, Citigroup Chief Financial Officer Gonzalo Luchetti stated that the bank plans to reduce its Banamex ownership below 50% before taking the lender public. This indicates an intention for Banamex to move toward majority public ownership while Citigroup retains a reduced, but still meaningful, interest.

The combination of a targeted January IPO, potential pre-IPO stake sales and a goal of lowering ownership below 50% underscores a phased approach to Citigroup’s exit from control of Banamex. The structure allows Citigroup to calibrate how much capital it raises at each step while transitioning Banamex to the public markets.

With multiple leading global banks involved, the offering is being positioned as a sizable capital markets event. As planning continues, the final size of the IPO, the sequencing of stake sales and the precise ownership structure post-listing remain key variables under consideration.