Citizens Financial Group has collected $3 billion in its initial public offering. The US subsidiary of Royal Bank of Scotland Group Plc priced the shares below the marketed range. It was said in a statement yesterday that RBS sold 140 million shares for $21.50 apiece after putting up the offer for $23 to $25 each.

Citizens Financial Group currently has 1,230 branches in 11 states. To be listed under the New York Stock Exchange under the symbol of CFG, the stock will begin trading today. The IPO will open doors for RBS to shed assets and provide a boost to capital as it gets acclimatized to stricter rules after receiving the biggest bailout in history during the financial crisis.

Chief Executive Officer Bruce Van Saun runs Citizens, which failed to surpass its US regional bank peers and is now looking forward to increase its return on equity by twice in coming two to three years.

"This bank is behind the curve in terms of improving profitability. You would expect the stock to be priced and valued appropriately", Terry McEvoy, an analyst at Sterne Agee & Leach Inc., said before the IPO priced.

Citizens' market value was estimated at $12 billion at the IPO price. It is valued at 0.9 times net tangible book value, which is used to compare an average of 1.91 times book value for US banks with a market value of more than $1 billion.

After the offering, RBS will still be holding a 75% stake in citizens. The IPO marked the second-largest US IPO this year after Alibaba Group Holding Ltd.

According to Ian Gordon, a London-based analyst at Investec Plc, RBS would face loss of about $300 million on the Citizens disposal as the British bank will reduce its stake below 50% over the next two years.