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Man Group Plans IPO for Brokerage Unit

Man Group, the world's largest publicly traded hedge fund company, said Friday it plans to split off its brokerage business, making it an independent company through an initial public offering on the New York Stock Exchange.

Man said the move would enable it to focus on its asset management operations.

Man did not provide details on how much it plans to raise in the IPO or how large a stake will be made available in the offering. It said the transaction should take place in the third quarter of this year.

"Separation will allow each business to focus even more effectively on their separate growth strategies," Chief Executive Peter Clarke said.

The company also said it expects pretax profit for the year through March 31 to be in line with analysts' forecasts. Sales for the same period will probably be about $15.9 billion. The company did not provide a comparative figure.

Man shares dipped 1.2% to 558.5 pence ($10.97) on the London Stock Exchange.