Citigroup (NYSE: C) plans to spin-off its Primerica Inc (NYSE: PRI) unit, a commission-based network of sales representatives which sell life insurance and investment products this week.
Citigroup is spinning off its Primerica unit as part of an attempt to simplify its operations and to rid itself of debt. The New York-based bank has been under pressure to generate capital and slim down as federal regulators are placing increased capital demands on bank. Citi has already sold its commodities trading unit, its Japanese brokerage and some credit card assets.
The bank hopes to generate $234 million for selling 18 million shares between $12.00 and $14.00 each. Citigroup will receive all proceeds from the sale.
IPO followers generally believe that Primerica’s offering will fare well because it’s priced fairly. Other IPOs this year have stumbled during their initial offerings because competition between investment bankers inflated offering prices.
Primerica will trade under the symbol “PRI.”
