Prudential (2378) has hired Citigroup to help work on a potential initial public offering of Indian unit ICICI Prudential Asset Management, according to people familiar with the subject.

A listing could raise about US$1 billion (HK$7.8 billion), the people said, asking not to be identified because the matter is private. Preparations are preliminary and details could change, the people said, adding that other banks are likely to join.

A Citigroup representative declined to comment and ICICI didn’t respond to a query on the IPO. Prudential didn’t immediately reply to requests for comment.

ICICI Prudential Asset Management is jointly owned by India’s second largest private sector lender ICICI Bank and UK-based insurer Prudential.

Prudential said Wednesday it was evaluating a listing of the asset management business that would involve a partial divestment of its holding and returning the proceeds to shareholders. Prudential’s shares closed at a seven-month high following the announcement. ICICI Bank has said it plans to retain its majority stake.

About US$20 billion was raised in Indian IPOs last year, including a record-breaking listing by Hyundai Motor’s local business, making it the world’s second-busiest market after the US.

Beyond a possible listing of its India venture, Prudential is considering options for asset manager Eastspring Investments, including selling a minority stake to help broaden the business, Bloomberg News has reported.

Prudential shares have risen 13 percent this year through Wednesday, valuing the company at about US$24 billion.

BLOOMBERG

REUTERS

Prudential is said to hire Citigroup for US$1 Billion India IPO