Another IPO might be on the way.
According to Citigroup Inc., they are preparing to file an IPO by the end of the month for Citibank Financial's subsidiary, OneMain Financial Inc.
Sources say that one of the largest intallment loans provider in the United States, SpringLeaf Holdings Inc. is interested in looking for a deal with OneMain. This Indiana-based lending company, which has 800 branches, already went public last year.
OneMain is the consumer-lending asset of Citi Holdings which was created after the financial crisis to cover unwanted assets. More than two year ago, OneMain have been up for sale but failed to reach a deal with its bidders.
Citigroup Inc's CEO Michael Corbat said in an earnings call that "When we think the environment's right, such that we can be paid value for that business, it's a business that is a terrific business, but business that's not core to really what Citi is. We're contiunuing to explore options. And when the time is right, we're specially going to be prepared to move on it."
The company plans to do a dual-track process, which menas it will try to sell the company before it goes public.
OneMain's business model is giving out personal and installment loans of USD 3,000 to USD15,000 to individuals. It offers flexible payment options, fixed rates for the loan durantion and instant release of the money once approved. The purpose of the loans can vary from unexpected expenses such as medical bills and car repairs, home improvements and for events such as weddings and travel expenses.
The qualify, one should be at least 18 years of age, established some credit history and has never filed for bankruptcy. They will also gauge if you have the ability to meet your monthly payments.
Consumer lenders have gained profit from the rebound in people's ability to pay after the financial crisis.
