CI Financial (CIX) has begun the process of conducting an initial public offering (IPO) of its US wealth management unit.
Toronto-based CI Financial has long talked about going public with its US wealth business to reduce debt and separate its Canadian and US businesses.
The US division, which manages around 183 billion US dollars in client assets, has submitted a draft of a registration statement for an IPO to the US Securities and Exchange Commission (SEC).
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 of this year.
Fund manager borrowing has become an issue for analysts and investors. Last month, CI Financial sold $400 million worth of bonds at a 7% yield.
A date for the IPO has not yet been set.
CI Financials stock is down 50% in 2022 and is trading at $13.61 per share.
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