By Matt Scuffham and John Tilak
TORONTO, Jan 18 (Reuters) - Canadian Imperial Bank of Commerce is targeting a valuation of 10 times earnings for the potential listing of its FirstCaribbean business in New York, which would give it a market value of around $1.4 billion, five sources familiar with the matter told Reuters over the past week.
That would represent a 30 percent discount to FirstCaribbean's current market capitalization, based on the value of its thinly traded shares on the Barbados Stock Exchange.
Reuters reported in December that CIBC, which holds a 91.5 percent stake in FirstCaribbean, was considering listing 20 percent of the business early in 2018, and, subsequently, selling more shares. While CIBC is pushing ahead with the listing plan, it could still decide not to proceed if it fails to achieve its targeted valuation, the sources said. The listing is expected to take place in the first half of 2018 and possibly as early as the first quarter, one of the sources said.
CIBC is working with Barclays and UBS to advise it on the potential listing, three of the sources said.
CIBC declined to comment on Thursday. Sources declined to be identified as the information is not public.
The bank said in December it was considering a listing of FirstCaribbean in the United States but had yet to make a decision.
(Reporting by Matt Scuffham and John Tilak; Editing by Denny Thomas and David Gregorio)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.