Moelis & Co. raised less than it planned in the first U.S. initial public offering of an investment bank since the financial crisis.
Bloomberg reports that led by Wall Street veteran Ken Moelis, 55, who founded the advisory firm seven years ago, Moelis raised $163m in its IPO, selling fewer shares below the marketed range. The offering was structured to let Ken Moelis retain control of the firm while still receiving a payout.
Moelis is testing investors’ appetite for newly issued investment-banking shares for the first time in the U.S. since FBR & Co. went public in 2007, according to data compiled by Bloomberg. Moelis debuts today, with peers Evercore Partners and Greenhill & Co. having dropped this month as stock markets tumbled.
The pricing is 'probably more of a reflection of the market weakness than a commentary on the business', said Peter Nesvold, a managing director at merger advisory firm Silver Lane Advisors. 'Since they set the range, the closest peers are down almost 10%'.
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