Hong Kong financier Li Ka Shing has appointed CIBC World Markets to arrange the sale of up to 17,008,928 common shares of CIBC.

The shares constitute approximately 4.9% of the total number of common shares of CIBC and represent all of Li’s direct and indirect holdings in the bank.

CIBC shares closed Wednesday down 17¢ at $71.17 on the Toronto Stock Exchange. If sold at that price, Li’s shares would raise more that $1.2 billion.

While no specific timing or pricing has been determined, the intention of any such sales is to maximize the proceeds to charitable foundations. The sale of shares is expected to be effected through the Toronto Stock Exchange.

Speaking in Hong Kong, Li said: “I have been pleased to be an investor in CIBC for many years, and this investment in the bank has earned a handsome return. Following the sale of the common shares, I will be able to increase the allocation of my assets to charitable purposes.”

Li added that he is establishing the Li Ka Shing (Canada) Foundation “in recognition of the warm welcome Canada has extended to me and to our group of companies over the years.”

John Hunkin, chief executive of CIBC, has agreed to serve on the Foundation’s board of directors.

Since their establishment, the Li Ka Shing Foundation, an approved charitable institution in Hong Kong established in 1980, and other private charitable foundations established by Li, have supported numerous charitable activities with grants, sponsorships and commitments of over $1 billion.

All available funds from proceeds of the CIBC share sales will be entirely donated to private charitable foundations established by Li, including the Li Ka Shing Foundation in Hong Kong and the Li Ka Shing (Canada) Foundation based in Toronto.

The foundations are required to expend all of their income in pursuit of charitable objectives, which include education, medical care, the relief of poverty, and cultural and religious causes.

The Li Ka Shing (Canada) Foundation has applied for registration as a charity in Canada.

CIBC has indicated that, pursuant to its normal course issuer bid, it will offer to purchase up to 6 million shares from Li when offered.