RBS prices float of Citizens at $21.50 a share

 
Michael Bow
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RBS is planning to sell 140m shares to raise $3bn (Source: Getty Images)
Royal Bank of Scotland was forced to scale back the price of its jumbo listing of Citizens Financial Group in the US last night, pricing shares at $21.50 each.

RBS, which will still own about 75 per cent of Citizens after the flotation, had earlier offered shares to investors at $23 to $25 each but was knocked down by investors pressuring the group after becoming wary of its ambitious financial forecasts for Citizens.

The bank is planning to sell 140m shares to raise $3bn (£1.8bn) and list the group in New York.

It will be the second biggest listing in the US this year, behind Chinese e-commerce Alibaba which floated last week in the biggest initial public offering of all time.

In contrast to Citizens, Alibaba had to ramp up the price of its shares before the float due to rising investor demand.

RBS boss Ross McEwan said: “The sale of Citizens is an integral part of the RBS capital plan. This IPO represents a key step on the path to full divestment.

“Selling Citizens will significantly improve our capital position and help us to create a strong and secure bank that can continue to fully support the needs of its customers.”

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