Jupai intends to raise $65m through the IPO, which is expected this month.
The proceeds will support the expansion of client centers in China, the hiring of more wealth management product advisors and client managers, and the build out its IT infrastructure, the firm said in a Securities and Exchange Commission filing.
The firm, in which Chinese internet giant Sina Corp holds an 11% stake, also intends to expand into online financial services.
Company officials cited China's growth in private wealth as a factor in its expansion. Total wealth held by households was the largest in Asia, excluding Japan, and the third largest in the world, “totaling approximately $21.4trn in 2014 as measured by investable assets excluding primary residences.
“China has become one of the fastest growing countries in total wealth in the world. China's private wealth grew at a CAGR of 8.8% from 2008 to 2014, compared with a CAGR of 5.3% for the rest of the world during the same period.”
The firm attributed the increase in wealth to rapid economic growth, increasing urbanisation and strong income growth and the “rapid and significant appreciation” of assets, largely real estate, held by China's households, especially high-net-worth households.
Jupai provides asset management products, mutual funds, and investment banking services to wealthy individual investors in China.
The wealth manager was founded in 2010 and diversified into asset management in 2013 by setting up Juzhou Asset Management.
It booked $45m in revenue for the 12 months ended on March 31.
Jupai’s float follows another Chinese wealth manager, Noah Holdings, which listed on the NYSE in November 2010.