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National Australia Bank Limited (ASX:NAB) has started the marketing of the initial public offering of its US-based subsidiary Great Western Bank.
NAB says it filed a prospectus with the US Securities and Exchange Commission at the end of last week.
The bank unveiled plans to offload its US subsidiary in August as part of its strategy to focus on its core franchises in Australia and New Zealand.
NAB plans to sell 16 million shares which represent 27.6 per cent of Great Western Bank’s stock and the offer price is expected to be between $US21 and $US24 per share.
The bank has previously said it hopes to divest all of its ownership in the asset over time but it is customary in the US to sell a minority stake first.
Pricing and completion of the IPO remain subject to a range of conditions.
National Australia Bank reported a net profit of $2.86 billion in six months to the end of March 2014.
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