Royal Bank of Scotland (RBS) has said that it is planning to sell 140 million shares of its US unit Citizens Financial to bolster its finances.
The decision to float Citizens ends speculation that RBS could seek to sell the US unit outright.
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RBS plans to sell Citizens shares for between $23 and $25 apiece, potentially raising as much as $4bn.
At the top of the valuation range the deal could value Citizens at $14bn.
All the shares in the offering are being sold by RBS.
RBS chief executive 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.
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By GlobalData"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."
RBS, which had said it was open to takeover offers for the unit, is spinning off the lender to boost profitability and recoup some of the money spent on a bailout during the financial crisis.
Providence, Rhode Island-based Citizens Financial has $122.2bn in assets, 18,600 workers and 1,370 branches across the New England, mid-Atlantic and Midwest regions.
