Citigroup targets over $3 billion Banamex IPO for January

Citigroup is preparing an initial public offering for Mexico's Grupo Financiero Banamex that could raise more than $3 billion, according to a Bloomberg report on Saturday citing people familiar with the matter. The bank is targeting January for the listing.

Citigroup is expected to lead the transaction alongside Bank of America, Goldman Sachs and JPMorgan Chase. The banks are evaluating how much of Citigroup's remaining stake can be sold before the listing, and smaller sales could occur beforehand. More banks could join as plans remain under discussion.

The transaction aligns with CEO Jane Fraser's strategy to exit consumer banking operations across several international markets. Citigroup previously sold a 25% stake in Banamex to Fernando Chico Pardo and another 24% to investors including General Atlantic and Blackstone, reducing its holding to roughly 51%.

CFO Gonzalo Luchetti stated earlier this month that Citigroup plans to lower its ownership below 50% prior to taking the Mexican lender public. Banamex also named Edgardo del Rincon, the former head of Banco del Bajio, as chief executive earlier this year.