Citigroup Files for IPO of OneMain Financial

Banking, finance, and taxes

Published: October 8, 2014 9:50 am

OneMain Financial Holdings Inc. filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were given for this offering, but the filing is for up to $50 million in common stock. The company will list on the New York Stock Exchange but has yet to decide on a ticker symbol. The sole book-running manager for this offering is Citigroup, which is not surprising because OneMain is a spin-off from Citigroup Inc. (NYSE: C).

OneMain is a finance company in the United States with a nationwide branch network and online channels. The company makes personal loans that are fixed-rate, fixed-term and fixed-payment, which are attractive to its customers. The customers have an average FICO score of 630 and an average income of $45,000. The company owns and operates a network of 1,141 branches as of the end of June 2014, and it serves 1.3 million customer accounts across 43 states.

Again, this is a Citi spin-off.

OneMain’s network consists of a local front-end workforce of approximately 4,100 employees and is supported centrally by approximately 1,100 employees, with additional functional support provided by Citi. The captive insurance business, Citi Assurance Services, or CAS, is staffed by an additional workforce of approximately 215 employees.

ALSO READ: 8 IPOs Coming This Week

During 2013, OneMain advanced new funds totaling $3.2 billion, and at the end of June 2014 it had $8.2 billion of loans outstanding and 1.3 million customer accounts. For the 2013 fiscal year, the company had net income of $536 million, representing a return on assets of 5.4% and return on equity of 19.9%. For the six months ending in June, it had net income of $287 million, representing a return on assets of 6.0% and a return on equity of 19.1%.

Proceeds from the offering are expected to go toward repaying the full amount due under the dividend note. The only selling stockholder is the Citigroup family of companies. The intention of this offering appears to be establishing a value for OneMain.

FULL ONEMAIN IPO FILING

Travel Cards Are Getting Too Good To Ignore

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.