Citigroup Seeks More Investors for Banamex Ahead of Potential IPO

Citigroup is moving forward with its plan to divest from Banamex, its Mexican retail banking unit, by seeking additional minority investors before launching a potential initial public offering (IPO). The strategy follows billionaire Fernando Chico Pardo’s agreement to purchase a 25% stake in Banamex for $2.3 billion, a move that values the unit at around $9.12 billion. This valuation establishes a benchmark for a future IPO, analysts say, even though it is below the $12.5 billion Citi originally paid for Banamex in 2001.

Ernesto Torres, Citi’s head of international, confirmed that the bank intends to court top Mexican investors in the coming months, but clarified that future stakes would be smaller than Chico Pardo’s share. Analysts view the deal as a crucial step toward Citigroup’s complete withdrawal from Banamex, which has faced years of uncertainty after a failed acquisition attempt by Grupo Mexico, led by billionaire German Larrea.

Locally, Chico Pardo’s investment has been celebrated. Mexican President Claudia Sheinbaum praised the return of Banamex to Mexican hands, a sentiment echoed widely after decades of foreign control. Unlike her predecessor Andrés Manuel López Obrador, who had imposed strict conditions on a sale, Sheinbaum placed no restrictions on the transaction. Pardo emphasized that the purchase was self-funded and intended as a long-term, transgenerational investment, noting that he does not plan to increase his stake.

With new leadership, Banamex aims to recover market share lost in recent years. Once holding 18% of Mexico’s loans in 2009, the bank now accounts for only about 6%, according to Goldman Sachs analysts. CEO Manuel Romo and Chico Pardo outlined plans to expand digital banking services and enhance customer experience, positioning Banamex for renewed growth.

Although Citi executives refrained from confirming a timeline, analysts expect the Banamex IPO could take place between mid-2026 and late 2026, slightly later than initially anticipated. The current equity deal is seen as similar to a first IPO share sale, reinforcing Citi’s divestment strategy and offering clarity on the future value of the iconic Mexican bank.