Citi Sells 49% of Banamex, Moves Toward IPO That Could Raise More Than $3 Billion
Key Facts
Citigroup has increased the total stake sold in Mexican bank Banamex to 49%, according to its third-quarter 2026 update, as it continues preparations for an initial public offering of the bank. Citi said the total followed the sale of an additional 1.4% stake in August 2026 as part of its exit from Banamex. Alongside the stake sales, Investing cited Bloomberg in a report dated September 25, 2026, based on people familiar with the matter, as saying the planned IPO could raise more than $3 billion. The ongoing exit thus combines the entry of investors through direct stake sales with preparations to list the bank's shares. The targeted IPO proceeds come after stakes in Banamex have already passed to new shareholders, including institutional investors and family offices.
Citi entered into agreements in February 2026 to sell a combined 24% stake in Banamex to institutional investors and family offices, according to its statement on the agreements. The terms set a fixed price of about 43 billion Mexican pesos for the stake to be sold, subject to customary purchase price adjustments. The bank estimated the dollar consideration at about $2.5 billion when the agreements were signed, the equivalent of the announced peso price at the time. These agreements followed a transaction completed in December 2025, under which a company wholly owned by Fernando Chico Pardo and his immediate family members acquired about 25% of Banamex. Pardo became chairman of the bank, according to Citi's announcement of the transaction's completion, combining his family's equity stake with his leadership of the board.
The choice of an IPO dates back to Citi's announcement on May 24, 2023, when the bank expected to conduct the offering during 2025. Jane Fraser said in that announcement that the bank had decided to "move from a dual-track approach to focus solely on an IPO of the business." Since that announcement, the operational separation of Citi's institutional banking business in Mexico from Banamex has been completed, according to the bank's statement on the separation's completion. The Banamex businesses included consumer and small and medium-sized enterprise banking, which were separated from Citi's institutional business. Current listing preparations therefore follow the completion of the operational separation and come after the original timetable, which had placed the IPO in 2025.
On investor outreach, Investing cited Bloomberg as reporting that Andres and Felipe Chico Pardo, sons of Banamex's chairman, met dozens of potential investors in New York City. The meetings were devoted to presenting the bank's strategy to those investors as part of preparations for the planned offering. The plan addressed management's efforts to regain Banamex's share of the Mexican lending market, according to the same report. The bank's share of that market had fallen from more than 22% to 6% by 2024. That comparison places the effort to rebuild its lending presence in the context of the strategy presented by Pardo's sons as they sought to attract potential shareholders to the bank.
For Citi's accounts, the exit carries an impact related to accumulated currency translation adjustments, alongside the transactions transferring share ownership to investors. The bank said in its third-quarter earnings presentation that it expects to recognize about $9 billion in losses from those adjustments. It tied the timing of recognition to Banamex meeting the accounting criteria for held-for-sale classification, the specified condition for recording this impact in earnings. Recognition of the losses affects Citi's net income and earnings per share, according to the bank's presentation to investors. The impact also extends to return on tangible common equity, encompassing the profitability measures Citi reports as it advances its exit from the Mexican bank.
As for the next steps, Citi expects to complete the deconsolidation of Banamex in early 2027, according to its third-quarter earnings presentation. On the listing, the Investing report citing Bloomberg said Citi and Banamex were targeting January, without setting a binding deadline for the offering. The report said IPO plans remain under discussion, meaning details could change as preparations continue. Citi links the offering's timing and structure to financial considerations and market conditions, according to its statement on the sale of stakes in Banamex. Regulatory approvals also remain among the conditions the bank has set for proceeding with the transaction, while its announced accounting timetable centers on early 2027.