The Offer will comprise 135 million shares, or 24.7%, of Citizens common stock at a public offering price per share of $23.75.
The sale will cut RBS's stake in Citizen from 70.5% to between 41.9% and 45.6% subject to investor demand for the over-allotment option, under which the underwriters have a 30-day option to purchase an additional 20.25 million shares at the public offering price.
The partial sale is part of RBS's strategy to fully exit its holding in Citizen by the end of 2016 as part of its European Commission state aid commitments.
A statement said that cash proceeds would be used for "general business purposes".
RBS Chief Executive Officer, Ross McEwan said:
“The sale of Citizens is an integral part of the RBS capital plan. It will help us to create a stronger, safer, UK focused bank that can better serve the needs of its customers.”
“This successful sale keeps RBS on track to meet our obligations and complete the divestment of Citizens by the end of 2016.”
