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RBS announces Citizens IPO pricing

Thursday 25th September 2014

Yesterday the Royal Bank of Scotland Group (RBSG) announced the final pricing of the initial public offering (IPO) of Citizens Financial Group, Inc.
The Offer comprises 140,000,000 shares, or 25%, of Citizens common stock at a price per share of $21.50.
RBSG has also granted a 15% over-allotment option, under which the underwriters have a 30-day option to purchase an additional 21,000,000 shares at the initial public offering price, less the underwriting discount to cover over-allotments, if any. 
If the underwriters exercise this option in full, the total Offer, including the shares pursuant to the over-allotment option, would comprise 161,000,000 shares or 28.75% of Citizens common stock.
Gross proceeds realised by RBSG will be $3,010m ($3,461.5m assuming exercise in full of the over-allotment option) with the cash proceeds being used for general business purposes.
Following the Offer, RBSG will continue to hold up to 75% of CFG's shares of common stock (71.25% assuming exercise of all of the over-allotment option), which are subject to a 180-day lock-up. 
Trading of Citizens common stock commenced on the New York Stock Exchange yesterday under the ticker symbol “CFG”.
Commenting on the announcement, RBS Chief Executive Officer, 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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