The Spanish bank shelved plans to list its UK business in June but still expects to spin off that arm and float in London either next year or in 2014. Sources said that Santander Mexico’s IPO could range between $3 billion (£1.9bn) and $4bn.
The eurozone’s biggest bank, which is battling recession at home and a debt crisis that is spreading across the common currency bloc, has multiple operations in Latin America.
The bank said it had not yet decided how much of the Mexican business to list but would retain a majority stake. It will list the shares on the Mexico City and New York stock exchanges.