Home Alts News CI Financial Plans IPO to Take U.S. Wealth Business Public

CI Financial Plans IPO to Take U.S. Wealth Business Public

CI Financial Corp. (NYSE: CIXX, TSX: CIX) announced plans to sell up to 20 percent of its U.S. wealth management business via a U.S. initial public offering.

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CI Financial Corp. (NYSE: CIXX, TSX: CIX) announced plans to sell up to 20 percent of its U.S. wealth management business via a U.S. initial public offering and expects to submit the relevant filings to the Securities and Exchange Commission this year.

Since entering the U.S. wealth sector in early 2020, CI Financial’s U.S. wealth management business has grown to become its largest unit by assets and will reach approximately $133 billion once all outstanding acquisitions are completed.

“The growth in our U.S. wealth management business is incredible; however, in our opinion, the value we have created isn’t reflected in our share price today,” said Kurt MacAlpine, chief executive officer. “After a thorough evaluation of our strategic options, we are confident that a U.S.-listed subsidiary IPO is the best route to shareholder value creation. The U.S. wealth management business now has sufficient scale to stand alone as a public company…”

CI Financial intends to use the net proceeds from the IPO to pay down debt.

The firm said that it will remain the majority shareholder of the U.S. wealth management business and currently has no intention of spinning out or divesting its remaining ownership interest.

A final decision on the IPO size, conditions and timing is pending and will be subject to market conditions.

CI Financial, a global wealth and asset management company, managed and advised on approximately $292.1 billion) in client assets as at February 28, 2022.

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