RBS sets final pricing for Citizens shares
Royal Bank of Scotland has announced the final pricing for the offering of shares in Citizens Financial Group will comprise 86m shares.
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The shares, priced at $26 each, represent 16% of Citizens’ common stock, the FTSE 100 group said on Wednesday.
The banking giant has also granted a 15% over-allotment option, which allows the underwriters a 30-day option to purchase a further 12.9m shares at the public offering price, minus the underwriting discount.
Should the underwriters exercise the option in full, the total offering size, including the shares issued in accordance with the over-allotment option, would comprise 98.9m shares, representing 18.4% of Citizens’ common stock.
RBS said it expects to raise $2.2bn from the offering, which will be used for general business purposes, while Citizens unveiled plans to repurchase an additional 9.6m of its common stock from RBS at the offering price via a direct buy-back.
Following the offering and the buy back, RBS will hold a 23.4% stake in Citizens’ common stock, which is subject to a two-month lock-up and it will no longer consolidate Citizens in its financial statements, with an estimated £1.1bn gain upon deconsolidation.
"This offering will leave us owning just over 20% of Citizens,” said RBS chief executive Ross McEwan.
“We are now targeting to be able to exit Citizens fully by the end of 2015, a year ahead of the original deadline."
RBS shares were up 0.64% to 353.94p at 0946 BST on Wednesday.