Clarington Corp., the corporate parent of Clarington Funds Inc., is proposing to go public via a secondary offering from some of its major shareholders.

According to a newly-filed prospectus, Clarington Corp.’s shareholders are seeking to sell about 5 million common shares of the firm. The principal selling shareholders are, Terence Stone, Adrian Brouwers, and Salvatore Tino, who control 24.7%, 6.9% and 5.2% of the outstanding common shares, respectively.

Clarington was founded in 1995 by Stone. Brouwer joined on in 1996.

Under the proposed deal, Stone will sell about 1.4 million shares, Brouwers will sell 478,539 shares and Tino will sell 166,560 shares. After the deal Stone, Brouwers and Tino will own approximately 11.3%, 2.3% and 3.6% of the outstanding common shares, respectively.

The rest of the shares will come from the other 51 Clarington shareholders that are willing to part with some of their stock. This will represent about 47.7% of the firm’s outstanding shares, or 41.1% on a fully-diluted basis.

As this is a secondary offering, none of the proceeds will go to the company. The firm has also granted an over-allotment option to its underwriters for up to 10% of the shares sold in the offering. If that is exercised, the proceeds would go to the company. The underwriters on the deal are Scotia Capital Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., and TD Securities Inc.

ClaringtonFunds distributes a family of 35 mutual funds. Since inception, the firm’s assets under management has grown from $363 million at December 31, 1998 to $3.1 billion at Sept. 30, 2003.