CI Financial (CIX) has begun the process to hold an initial public offering (IPO) of its U.S. wealth-management unit.
Toronto-based CI Financial has long talked about holding an IPO of its American wealth business as a way to reduce debt and separate its Canadian and U.S. businesses.
The U.S. division, which manages about $183 billion in client assets, has submitted a draft registration statement with the U.S. Securities and Exchange Commission (SEC) for an IPO.
CI Financial plans to use proceeds from the IPO to improve its balance sheet, which had nearly $4 billion in debt as of September 30 this year.
The fund management company’s borrowing has become an issue for analysts and investors. Last month, CI Financial sold $400 million worth of bonds at a yield of 7%.
A date for the IPO has not yet been set.
CI Financials’ stock is down 50% in 2022 and trading at $13.61 per share.
