Old Mutual's wealth management arm is increasingly likely to seek an IPO that could value it as high as around £4 billion, bankers say, following the announcement by Old Mutual that it would split itself into four businesses.

Any float would create a listed wealth management group to rival FTSE 100-listed St James's Place, whose share price rise of 190% over the last 10 years has given it a £4.6 billion market value.