UPDATE 1-Canada's CI Financial to spin off part of U.S. wealth business via IPO
(Adds details from statement, background)
April 7 (Reuters) - CI Financial Corp plans to spin off up to 20% of its U.S. wealth management business through an initial public offering, the Canadian asset and wealth manager said on Thursday.
The move comes at a time when the U.S. capital markets are reopening for new listings after a quiet period due to market volatility, exacerbated by regulatory and geopolitical issues.
The U.S. wealth management business has become CI Financial's largest by assets with roughly $133 billion under management once all outstanding acquisitions are complete.
CI Financial will remain the majority shareholder of the unit after the offering and plans to use the proceeds to pay down debt. It intends to submit paperwork for the IPO with the U.S. securities regulator later this year.
The company said it has no plans to divest or spin off its remaining stake in the unit. The size, timing and conditions of the offering will depend on market conditions, it added. (Reporting by Sohini Podder in Bengaluru; Editing by Devika Syamnath and Aditya Soni)
