In its statement, AJ Bell said its management plans to keep its sell-down "modest", and that the group's two largst shareholders, Bell and Invesco Perpetual, will "both retain cornerstone shareholdings" after the flotation.
In the 12 months to 30 September 2017 AJ Bell reported revenue of £75.6m, a 17.2 per cent increase on the previous year, while pre-tax profit increased by 29.1 per cent to £21.7m.
The group said it does not intend to raise new capital as part of the IPO "given its financial strength, highly profitable business model and debt-free balance sheet".
It would include a retail share offer, available to AJ Bell's customers.
The platform has £42 billion of total assets under administration.
"An IPO is a natural next step in our journey and will provide a further boost to our future growth through the increased profile a stockmarket listing will give us".
"We believe the outlook for our business is extremely positive", Bell said. "The need for people to save and invest for their future has never been stronger and we are making it easier for them to do that".
Woodford (pictured) first invested in AJ Bell in 2007 at Invesco Perpetual, before investing again after the launch of his Woodford Equity Income fund and Woodford Patient Capital investment trust.
The FT report noted that the Woodford Equity Income fund had offloaded its 8% AJ Bell stake in February.
AJ Bell said that its 172,000 clients would be the only small investors eligible for its initial public offering, which is set to value the stake of Andy Bell, its founder, at about £140 million. Financial Conduct Authority rules dictates the fund is not allowed to hold more than 10% of its assets in unlisted shares.
The listing, on the main market of the United Kingdom stock exchange, is expected at the end of 2018 or early 2019. "It has always been our clearly defined strategy to nurture young technology-intensive businesses through the early stages of their development".
The company confirmed that the IPO does not come as a effect of any need to raise capital.