(Adds details from filing)
May 12 Citizens Financial Group Inc, the U.S.
unit of Britain's Royal Bank of Scotland, filed with
U.S. regulators for an initial public offering of common stock
that would raise about $100 million.
RBS had said last year that it would sell 20-25 percent of
Citizens by the end of 2014 through a U.S. IPO as the bank faces
pressure from British regulators to bolster its capital and sell
off non-core assets.
All the shares in the offering are being sold by
stockholders and the Citizen will not receive any proceeds,
Citizens Financial said. (link.reuters.com/nag39v)
Citizens, which provides retail and commercial banking
services to about 5 million customers, said in the filing that
the U.S. Fed in March objected to its capital plan submitted as
part of the stress test, or the Comprehensive Capital Analysis
Citizens also said two of its banking units are subject to
consent orders from regulators in connection with findings of
deceptive marketing and implementation of its checking account
and funds transfer services.
Citizens plans to grow its wealth management business by
hiring 100 to 150 financial consultants.
Morgan Stanley, Goldman Sachs & Co and JPMorgan are the lead
underwriters for the IPO, the company said in the filing with
the U.S. Securities and Exchange Commission on Monday.
The filing did not reveal how many shares the company
planned to sell or their expected price.
Citizens has $122.2 billion of total assets and about 1,370
branches in 12 states across the New England, Mid-Atlantic and
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.
(Reporting by Anil D'Silva in Bangalore; Editing by Don
Sebastian and Sriraj Kalluvila)