View Count: 191 |  Publish Date: April 04, 2014
Moelis seeks $1.6-billion valuation in IPO

Moelis & Co., the investment bank founded seven years ago by Kenneth Moelis, is seeking to raise as much as $243.5 million in an initial public offering.
Moelis plans to sell 7.3 million shares for $26 to $29 each and as many as 8.4 million if underwriters exercise an option to buy additional stock, according to a regulatory filing today. At the high end of the range, the company would have a market value of $1.58 billion, based on 54.4 million shares outstanding if all Class A partnership units and Class B shares were immediately converted into common stock.
Ken Moelis, 55, will own 96.6 percent of the combined voting power in the firm, the filing shows. His holdings in the New York-based investment bank will include 2.34 million Class A common shares and all 36.3 million Class B shares.
Now is probably a good time to be a seller into the IPO market, said Peter Nesvold, a managing director at merger advisory firm Silver Lane Advisors LLC in New York. Having a publicly traded stock will help Moelis pay and keep its top bankers, he said.
With U.S. stock benchmarks at record highs, investors are snapping up new stocks. Companies that have raised $15 billion in U.S. IPOs so far this year are up 19 percent since their debuts, on average, data compiled by Bloomberg show.
Moelis, who left UBS AG to start his firm -- drawing on a list of clients gathered while also working at Drexel Burnham Lambert Inc. and Donaldson Lufkin & Jenrette -- is joining a small group of Wall Street dealmakers whove cashed in on their success by taking their firms public. Evercore Partners Inc., the firm led by former U.S. Deputy Treasury Secretary Roger Altman, raised $83 million in August 2006 and Robert Greenhills Greenhill & Co. conducted a share sale in May 2004.
At the $1.58 billion valuation, Moelis is seeking a a valuation of almost 23 times 2013 earnings of $70.2 million. Evercore and Greenhill trade at upwards of 33 times earnings, data compiled by Bloomberg show. Evercore has climbed 163 percent since its initial offering, while Greenhill has almost tripled since its debut.
Moelis ranked 12th among merger advisers in 2013, its highest ever position, after advising companies such as HJ Heinz Co. on $134 billion in transactions last year, according to data compiled by Bloomberg.
The firm increased its revenue by 6.6 percent to $411.4 million in 2013, the filing shows. At the end of the year, the firm had 317 bankers, after cutting its staff by 7 percent. Net income doubled to $70.2 million and compensation costs fell to 64 percent of revenue from 71 percent in 2012, the filing shows. .taboolaDiv { border-top: 1px solid #EEE; border-bottom: 1px solid #EEE; padding: 15px 0; } #_pmfa-sky1-f { width: 610px; float: none; } #pmad-in2 { margin-top: 30px; float: none; } #_pmfa-sky1-f div.text-body, #_pmfa-sky1-f .wrap-out, #_pmfa-sky1-f .wrap-in { width: 610px; } #_pmfa-sky1-f ul.text-body li { width: 49%; float: left; } Weve upgraded our reader commenting system. Learn more about the new features. Los Angeles Times welcomes civil dialogue about our stories; you must register with the site to participate. We filter comments for language and adherence to our Terms of Service, but not for factual accuracy. By commenting, you agree to these legal terms. Please flag inappropriate comments.Having technical problems? Check here for guidance.

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Time: 15:26  |  News Code: 394278  |  Site: L. A. Times
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