It’s almost two months since AXA announced plans to pick up XL Group for US$15.3 billion (around £10.9 billion) – and now the French insurer has revealed part of its funding strategy for the mega deal.

Paris-headquartered AXA is planning to raise billions by making an initial public offering (IPO) of its US business AXA Equitable, according to a Financial Times report.  

Today, the company revealed it would sell up to 157 million shares in AXA Equitable at a price of between US$24 (£17) and US$27 (£19), which would raise just over US$4 billion (about £2.86 billion) at middle range.

CEO Thomas Buberl announced AXA’s plans for an IPO in 2017, with the aim of taking the group away from the financial market-sensitive life insurance business it writes in the US. While IPO money will assist the insurer with the US$15.3 billion (around £10.9 billion) billion acquisition of XL Group, Buberl has stressed the deal does not depend on it.

Pre-IPO financial reorganisation of AXA Equitable has also resulted in a US$3.2 billion (around £2.3 billion) payment to the insurer’s Paris HQ, the company revealed on Wednesday. This money is also likely to play a part in the XL acquisition.

JPMorgan, Morgan Stanley, Citigroup and Barclays have all been drafted in by AXA to sell its shares. The timeframe for the IPO has not been revealed.