RBS, is expected to sell 140 million shares in Citizens at between $23 and $25 each in the New York IPO.

The listing is expected to price later on Tuesday.

RBS, which is 80 percent owned by the British government, is hiving off the 186-year-old Rhode Island-based bank under pressure from regulators and lawmakers to bolster its capital and focus on lending to UK households and businesses.

RBS declined to comment on the report.

(Reporting by Supriya Kurane in Bangalore; Editing by James Dalgleish)

Stocks treated in this article : Royal Bank of Scotland Group plc, CITS FINA