Citigroup Inc. C announced Wednesday that it will pursue an initial public offering (IPO) of its consumer, small business and middle-market banking operations in Mexico. Citi’s stock slumped 1.3% in premarket trading. The banking giant said the business will keep its name Banco Nacional de México, also known as Banamex. The IPO will follow the planned separation of its institutional business, which will remain part of Citi. “After careful consideration, we concluded the optimal path to maximizing the value of Banamex for our shareholders and advancing our goal to simplify our firm is to pivot from our dual path approach to focus solely on an IPO of the business,” said Citi Chief Executive Officer Jane Fraser. The IPO is expected to occur in 2025. Separately, the company said it expects to resume a “modest level” of share repurchases in the current quarter, but will continue to assess buybacks on a quarter-by-quarter basis given uncertainty regarding regulatory capital requirements. Citi’s stock has edged up 1.5% year to date through Tuesday, while the S&P 500 SPX has gained 8.0%.
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