Banamex leadership pitches turnaround ahead of targeted Citi IPO - Bloomberg

Investing.com -- Citigroup Inc (NYSE: C) is pressing ahead with preparations to fully spin off its former Mexican consumer banking business, paving the way for an initial public offering targeted for early next year. While Citigroup Chief Executive Officer Jane Fraser focuses on completing the operational separation, newly appointed leadership at Grupo Financiero Banamex is actively pitching a broader commercial turnaround to Wall Street, Bloomberg reported.

Andres and Felipe Chico Pardo, sons of Banamex Chairman Fernando Chico Pardo, recently met with dozens of prospective investors in New York City to outline strategy, according to people familiar with the meetings. The executives signaled plans to pursue a more aggressive lending strategy aimed at regaining market share lost during Citigroup’s multi-decade stewardship of the historic Mexican franchise.

The institutional roadshow follows a rapid shift in Banamex's ownership structure, initiated when Fernando Chico Pardo acquired a 25% stake in late 2025. Citigroup subsequently reduced its holding further early this year through stock sales to private equity firms, including General Atlantic and funds managed by Blackstone Inc.

To execute the remaining stake sale, Citigroup has assembled a major syndicate of global financial institutions, Bloomberg reported. Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley join European lenders Barclays Plc, Deutsche Bank AG, Banco Santander SA, and UBS Group AG alongside Citigroup to lead the offering.

Citigroup is seeking to raise more than $3 billion through the transaction, though final pricing and share volumes remain under consideration. A successful debut would represent a landmark deal for Mexico’s equity capital markets, which have experienced a prolonged drought in new corporate listings.

The planned public listing will also expand choices for global investors seeking pure-play exposure to Mexico's banking sector, long dominated by foreign institutions. Aside from Grupo Financiero Banorte SAB de CV, Banamex will be the only other major domestically rooted lender available on the public market.

The turnaround effort directly addresses severe operational erosion experienced by Banamex over the past two decades. Under Citigroup's ownership beginning in 2001, Banamex saw its share of Mexico's total loan market plummet from over 22% down to 6% by 2024, prompting the structural separation of Citigroup's institutional unit and consumer retail operations late that year.

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