Canada’s CI Financial has confidentially filed a draft registration statement with the Securities and Exchange Commission for an initial public offering (IPO) of its US wealth management unit. 

The firm has not yet taken a decision on the number of shares to be offered for sale and the price, reported Bloomberg

It will use the proceeds to pay down debt, which totalled $3bn at the end of September 2022.

“The company is making the announcement at this time to be responsive to numerous requests for an update on the status of the submission, the content of which remains confidential,” CI Financial was quoted as saying by the news agency.

Plans to offload up to 20% of the US wealth arm through an IPO were announced in April this year. CI Financial will retain the remaining stake. 

The unit, which is now CI Financial’s largest business line by assets, has nearly $134bn in client assets under management.

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This move comes amid the firm’s recent expansion in the US through purchases of registered investment advisory businesses.

The Toronto-based firm has now decided to refrain from utilising cash from its Canadian operations to support these US acquisitions.

CI Financial shares have reportedly almost halved so far in 2022.