Investment bank Morgan Stanley has announced its intention to sell a minority interest in its subsidiary, MSCI, in an initial public offering (IPO) of Class A common stock. The IPO is expected to be completed by the end of 2007, subject to market conditions and receipt of regulatory approval. MSCI filed a preliminary registration statement with the US Securities and Exchange Commission on 31 July.
MSCI is a provider of investment decision support tools to equity, fixed income and multi-asset class investment institutions worldwide. These tools include the MSCI indices and the Barra portfolio risk analytics.
“The initial public offering and potential separation of MSCI are consistent with Morgan Stanley’s strategy to focus our people, capital and resources on our core businesses, including institutional securities, asset management and global wealth management,” says John Mack, chairman and CEO of Morgan Stanley
Although no final decision has been made, Morgan Stanley believes it would be beneficial to ultimately divest its remaining ownership interest in MSCI. However, that decision will be subject to market conditions and other factors. Morgan Stanley owns 96.6% of the outstanding shares of MSCI. Capital Group International owns the remainder of the shares.