RBS Citizens to launch IPO

13th May 2014 10:05

The US subsidiary of Royal Bank of Scotland (RBS), Citizens Financial Group, has officially announced its intention to sell shares.In what RBS Chief Executive Ross McEwan called a "milestone" for the group, Citizens will either carry out an initial public offering (IPO) or be sold. The move comes after doubt was cast over the business's divestment earlier this year when it failed an annual stress test by the Federal Reserve. The unit's worth was estimated at $10bn when plans for its sale were initially put forward last year. The proceeds of the divestment will go entirely to shareholders, the filing said. It also warned potential investors that "RBS is 79.9%-owned by the UK government and its interests may conflict with ours or yours in the future". In a statement made earlier this year, the group said it planned to sell between 20-25% of Citizens, with its full sale anticipated for completion by the end of 2016. RBS shares had risen 0.58% to 328.10p by 10:05 on Tuesday. NR