Citigroup announced on Wednesday its intention to pursue an initial public offering (IPO) for its Mexico-based subsidiary, Banamex, thereby abandoning its 16-month-long effort to find a strategic buyer for the unit.

The bank plans to complete the separation process in the second half of 2024, followed by a probable public offering in 2025, according to a statement released by Citigroup. While the listing destination has not been determined yet, there is a possibility of a dual listing in both Mexico and the United States, as per a source familiar with the plans who spoke to CNBC.

CEO Jane Fraser stated in a press release, “After careful consideration, we concluded that the optimal way to maximize the value of Banamex for our shareholders and advance our goal of simplifying our firm is to shift from our dual path approach and solely focus on an IPO of the business.”

Citigroup had been exploring the option of selling the business, and media reports as recent as this month suggested that a deal was nearing completion with an approximate valuation of $7 billion.

In 2001, Citigroup acquired Banamex for $12.5 billion. The bank initially announced in 2022 its decision to exit the business, which operates over 1,300 branches, serving more than 12 million retail clients and approximately 10 million pension fund customers. It employs around 38,000 individuals.

Furthermore, the company revealed on Wednesday its plans to resume share buybacks during this quarter. Citigroup’s shares experienced a nearly 2% decline in premarket trading on Wednesday.