In an effort to shed its non-core operations, Citigroup Inc.’s (C) wholly-owned subsidiary and life-insurance unit, Primerica Inc., has filed for an initial public offering (IPO) of 18 million shares.

The offering, which is expected to be priced in the range of $12 to $14 per share, would raise up to $252 million. Additionally, the underwriters have also been granted an option to purchase up to 2.7 million shares. This would result in total proceeds of $290 million, considering the higher price. The shares sold in the offering will be offered by Citi, who will receive all its proceeds.

Additionally, in a private sale to private equity funds managed by Warburg Pincus LLC, Citi would sell about 17.2 million shares of Primerica common stock for about $230 million and warrants to purchase another 4.3 million shares.

Following the public offering and the private sale, Citi will own approximately 32% to 46% of Primerica’s pro forma shares of common stock while Warburg Pincus’ stake will be around 23%−33% in Primerica.

The actual stake-holding percentage will be determined on the level the underwriters exercise the over-allotment option and the extent to which Warburg exercises its right to buy additional shares.

Citi had initially planned to launch the Primerica IPO in November 2009 and was seeking to raise $100 million that time. Primerica sells life insurance and insurance products mainly through part-time independent agents and focuses on middle-income households. The shares are expected to be listed on the New York Stock Exchange under the ticker symbol “PRI.”

Citi shares closed at $4.05 on Wednesday in the regular session on the New York Stock Exchange. The shares increased by a cent or 0.25% in the after-market session.

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