OneMain Financial, the consumer finance unit of Citigroup with over 1,100 branches, has filed for a $50m initial public offering (IPO) in the US.
The spinoff of OneMain comes five years after Citigroup first signaled that it intended to jettison the business.
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The filing provides a window into OneMain, whose results Citigroup hasn’t publicly parsed out before. Citigroup’s subprime unit suffered major losses in the financial crisis, but the filing shows it has been profitable since at least 2012: earning $407 million in net income in 2012, and $536 million in 2013. Citigroup earned $7.54 billion and $13.67 billion in those years, respectively.
OneMain, which has assets of about $10bn, offer personal loans for meeting unexpected expenses such as medical bills or car repairs and for buying small-ticket items such as refrigerators and televisions.
The company did not specify the number of shares to be sold and the pricing.
The company said it plans to apply to have its common stock listed on the New York Stock Exchange, but has yet to decide on a ticker symbol.
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By GlobalDataIn regulatory filing with SEC, Citigroup disclosed OneMain-which suffered major losses in the financial crisis- has been profitable since at least 2012. The unit earned $407m in net income in 2012 and $536m in 2013.
