RBS also placed a 30-day over-allotment option to sell another 21 million shares of Citizens.
Acquired by RBS in 1988, Citizens is valued at $13.1bn. It has around $130bn in assets, with more than 1,200 branches in 11 states across the New England, Mid-Atlantic and Midwest regions in the US at the end of June this year.
RBS CEO Ross McEwan said: "We announced our intention to undertake an IPO of Citizens in February 2013 and today’s launch is an important milestone for both RBS and Citizens.
"The planned divestment will significantly improve RBS’s capital foundation and is a further important step in making RBS a strong and secure bank that continues to fully support the needs of its customers."
The IPO will allow RBS to improve its capital base and concentrate on key domestic business. The bank will use the proceeds to repay some of the money spent on its bailout by the UK Government during the 2008 financial crisis.
Image: Citizens Financial Group has around $130bn in assets and is valued at $13.1bn. Photo: courtesy of Royal Bank of Scotland.
