BNP Paribas SA (ADR) (OTCMKTS:BNPQY) has announced that it is planning to come up with an initial public offering of its subsidiary First Hawaiian Bank. The company hopes to start the IPO as early as June of 2016. BNP expects to raise $1 billion, through the offering, making the bank worth $4-5 billion. The IPO comes at a time when several other companies are gearing up for their debut in the market as well.

If the BNP can build on its plans successfully, it is anticipated that the IPO would be the biggest in 2016, so far. It should be noted here that the First Hawaiian Bank is the largest bank of the country. It is also important to note here that a total of 9 companies have went public in 2016, so far and together these IPOs have generated a total of $1.2 billion.

Reports from inside BNP reveal that the bank plans to use the IPO in order to bolster its capital. Moreover, the bank had planned to start the IPO in May, but that did not leave enough time to clear regulatory issues and gain an approval. The First Hawaiian Bank is scheduled to first undergo a Federal Reserve stress-test, before proceeding to gain regulatory clearance for the offering. Inside reports have also revealed that BNP had initially planned to sell the bank and its $19 billion worth assets, but opted for an IPO after a lack of strategic buyers.

Apart from gearing up for one of the biggest IPOs, BNP also faces a lawsuit from one of its ex-employees. Bob de Groot, who was suspended in 2014, has claimed that his job was terminated, after he revealed a foreign exchange scandal inside the bank. The hearing would be held in London, on April 18. BNP officials are yet to comment on the matter.

BNP Paribas SA (ADR) (OTCMKTS:BNPQY) closed at a share price of $23.85, after reporting a gain of 2.36%, during the April 8 session.