When will Citigroup IPO?
The short answer is, it’s still too soon.
Citigroup, which is in the midst of a massive, $13.7 billion capital raising, has yet to get approval from the Securities and Exchange Commission (SEC) for the IPO.
Citicoins’ stock has fallen by almost a third since its June 23 listing.
While it’s expected to be traded in the $60 range, investors should be prepared for the stock to dip even lower in the months ahead.
Citigroup is expected to close the initial public offering of its stock this Thursday.
It will be one of the first large publicly traded companies to IPO in the US since Facebook and Microsoft in late 2017.
Its IPO will be preceded by a public offering for its stock in the third quarter of 2018.
The company will pay $17.8 billion for Citigroup and its related assets.
The Securities and Exchanges Commission (SEX) has issued a series of rules for the initial offering of a publicly traded corporation, including requiring that a public listing be provided in advance of the public offering, as well as requiring that an initial public offer price not exceed 10% of the fair market value of the corporation.
The SEC has also asked banks to prepare for possible regulatory requirements.
The SEC also announced that it will issue a series on the “disclosures and disclosures requirements of the securities laws and regulations,” which could require banks to disclose certain disclosures to their investors.
The SEC has yet again signaled its desire to hold the IPO at a reduced price, although the agency has been hesitant to lower its initial public offerings price tag to a level that might not satisfy the public.
Last week, Citigroup issued a $4.4 billion preliminary notice of proposed rulemaking to raise $1.8 trillion to fund the bank’s efforts to boost profitability, including the purchase of assets.
The notice was meant to be more of a “preliminary draft” of the final rule, but some banks have been pushing to lower the initial IPO price tag, and some have even been offering to reduce the IPO price, according to Bloomberg.
Citi is also working to raise capital for its own investment in Citigroup Bank, which will be a separate fund that will be overseen by Citigroup Chairman and CEO Vikram Pandit.
The two firms plan to invest $4 billion in the fund.
Citi’s share price has fallen nearly 40% since the IPO announcement, with investors hoping the bank would have the liquidity to cover the increased share count.