The figure is a placeholder used to calculate fees and may change. All proceeds from the offering will go to RBS.
Citizens traces its history to 1828 as High Street Bank, adopting its current name in 1871. The Providence, Rhode Island-based bank, with $122.2 billion in assets, has been an RBS subsidiary since 1988 and operates branches in the Northeast and Midwest. Citizens posted revenue of $4.69 billion last year, a decline of 4.2 percent from 2012, the filing showed.
RBS had been open to takeover offers for Citizens, holding talks with potential buyers that didn’t yield anything substantial, Bruce Van Saun, chief executive officer of the unit, said in January. Citizens agreed to sell its Chicago branches to U.S. Bancorp for about $315 million in January.
RBS, based in Edinburgh, had its capital plan for Citizens rejected by the Federal Reserve less than two months ago as the U.S. regulator cited flaws in the unit’s internal processes. The British government, which owns 80 percent of RBS, has been pushing the lender to focus on U.K. consumer and corporate banking as it tries to recoup some of the 45.5 billion pounds ($76.8 billion) spent bailing out the company five years ago.
Morgan Stanley (MS) and Goldman Sachs Group Inc. are managing the offering. Citizens didn’t indicate whether it plans to list on the New York Stock Exchange or Nasdaq Stock Market.
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