Investment management firm Canaccord Capital Corp. has announced plans for an initial public offering of common stock by its parent Canaccord Holdings Ltd.

A preliminary prospectus relating to the offering was filed with Canadian securities regulators Thursday. In it, the company revealed that former Ontario premier Mike Harris and British Columbia billionaire Jim Pattison will be on its board when it launches its IPO that is expected to raise about $100 million next month.

The preliminary prospectus also reveals that Canaccord intends to use the net proceeds of its IPO to support increased capacity in its private client operations, expand its capital markets capability by providing capital to support increased investment banking activity, expand its on-line trading capability and correspondent brokerage services operations.

Canaccord will also repay subordinated debt of $10 million and may pursue strategic initiatives such as acquisitions. However, the prospectus notes that Canaccord doesn’t have any acquisitions ready to go.

As for its growth strategy, Canaccord says that it is seeking a balance between transaction-based and fee-based revenue sources. The prospectus notes that the firm’s capital markets activity also adds to the diversification of its revenue sources. The firm has seen a much stronger contribution from capital markets businesses in recent years. Back in 2001, the private client business accounted for 64% of revenues, with 30% coming from capital markets. In 2004, retail is down to 44% and capital markets has jumped to 53%.

“Even though recent economic conditions have been generally favourable there continues to be latent uncertainty with respect to the outlook for stock market performance arising from geopolitical concerns, regulation, economic uncertainty and upward pressure on interest rates,” the prospectus notes. “Canaccord believes that investors will continue to seek professional advice and services in this environment and that as a full service investment dealer with a diversified service platform and product mix it is well positioned to service the needs of its clients, attract new clients and continue its strategy of growth.”

The offering will be sold through a syndicate of underwriters led by CIBC World Markets Inc. and including Canaccord Capital Corp., BMO Nesbitt Burns Inc., Scotia Capital Inc., RBC Dominion Securities Inc., GMP Securities Ltd., National Bank Financial Inc. and TD Securities Inc.

Upon closing the parent firm will be renamed Canaccord Capital Inc.

“This important event in Canaccord’s history is an exciting one and provides the firm with a number of significant opportunities. It will provide us with the ability to: deploy additional capital; build further on the growth opportunity which exists for a strong independent investment dealer offering full service capabilities to its clients; and, to consider possible strategic acquisitions as a means of achieving our growth objectives,” said Peter Brown, chairman and CEO of Canaccord Capital Corp., in a news release.

Founded in 1950, Canaccord Capital Corp. is an independent full service investment dealer. Canaccord has substantial operations in each of the two principal segments of the securities industry: private client services and global capital markets. The firm provides brokerage services and investment banking services to retail, institutional and corporate clients. There are approximately 1,200 employees worldwide, including 650 licensed representatives.