Morgan Stanley's MSCI unit files IPO |
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Wed, 01 Aug 2007 00:13
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NEW YORK (AP) - Financial services firm Morgan Stanley said Tuesday it plans to sell a minority interest in its subsidiary, MSCI Inc., in an initial public offering of Class A common stock.In a preliminary filing with the Securities and Exchange Commission, MSCI did not disclose the number or expected price range of shares to be offered, but indicated that the proposed maximum offering price would be $200 million.The company noted that the total offering price was estimated solely to calculate the amount of the registration fee and may change.Prior to the completion of the offering, MSCI plans to obtain a new credit facility, the net proceeds of which will be used to pay the $625.9 million demand note held by Morgan Stanley. MSCI plans to use all of the net proceeds from the offering to pay a portion of the credit facility.For the six months ended May 31, MSCI reported net income of $41.5 million, compared with $35.4 million the year-ago period.MSCI provides a number of investment decision support tools, including the MSCI indices and the Barra portfolio risk analytics, to help investors analyze and manage risk. Clients include 24 of the 25 largest asset management firms globally.The offering will help Morgan Stanley focus on its core businesses, including institutional securities, asset management and global wealth management, said Chairman and Chief Executive John Mack in a release.Morgan Stanley owns 96.6 percent of MSCI's outstanding shares. Capital Group International Inc. owns the remainder of the shares.The IPO is expected to be completed by the end of 2007, subject to market conditions and regulatory approvals.Morgan Stanley will serve as the sole underwriter for the offering.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Morgan Stanley announces IPO of MSCI 