The bank requires a slew of regulatory approvals to initial public offering in both Mexico and the United States as it seeks to “make headway” with potential investor. — Bloomberg
MEXICO CITY: Citigroup Inc’s effort to list its Mexican retail banking operations may stretch into 2026 as it navigates a rocky market, regulatory approvals and seeks to bring key investors on board, according to its top executives.
The bank, which had originally targeted 2025 for the move, requires a slew of regulatory approvals to initial public offering (IPO) in both Mexico and the United States as it seeks to “make headway” with potential investors, chief financial officer Mark Mason said on an earnings call on Wednesday.
The bank could place roughly 15% tranches of the business in offerings over a 12- to 24-month period until it’s fully exited the unit, he said.
Citigroup completed its separation of Citibanamex into Grupo Financiero Citi Mexico and Grupo Financiero Banamex late last year in preparation for the IPO of Banamex shares.
The split followed a failed process to sell the retail business after conditions were imposed by Mexico’s then-President Andres Manuel Lopez Obrador.
A bid from billionaire German Larrea’s Grupo Mexico SAB was scuppered in 2023.
Jane Fraser, who launched the effort to sell the retail business in 2022, said the bank wants to IPO the unit as soon as it can.
“But given market conditions and given regulatory approvals, it’s possible this could go into ‘26,” the chief executive officer said on the call.
“We’re doing everything in our control to be ready as soon as possible.”
Mason stressed that they haven’t provided an exact timing for the IPO process as the bank considers alternative IPO structures and potential investors.
Both executives spoke following Citigroup’s fourth-quarter results, where it announced US$20bil worth of buybacks that helped send the stock soaring by almost 8% at one point.
“We had to put up, you know, Mexico’s eighth largest bank de novo in a very short period of time,” Fraser said. — Bloomberg
