Moelis Shares Open Higher in Trading Debut

Moelis & Co.'s shares opened higher in their trading debut, after an initial public offering that priced below the New York investment bank's expectations.

The shares held the gains in early trading, after opening at $27, up 8% from the company's $25 IPO offer price.

Moelis sold 6.5 million shares in its debut, raising $162.5 million before the potential sale of additional shares by underwriters. The sale fell short of the company's projection to sell 7.3 million shares for $26 to $29 each, according to a regulatory filing.

The lackluster pricing follows a pullback in U.S. stocks in recent weeks, particularly in shares of many newly public companies. IPOs have still been getting done this week, but all five U.S.-listed debuts to price since the weekend have seen investors offer a lower per-share price than the companies had expected.

Demand for shares of newly listed companies has suffered alongside the past month's selloff in certain parts of the market, such as high-growth technology and biotechnology stocks.

Shares of the so-called investment banking boutiques that closely resemble Moelis haven't escaped the selling. Evercore Partners Inc.'s shares fell 17% this year through Tuesday while Lazard Ltd. declined 2.4%. They are up 31% and 29% the past 12 months, respectively, well ahead of the S&P 500's 17% advance.

Moelis listed on the New York Stock Exchange Wednesday under the symbol "MC." Goldman Sachs Group Inc. led the offering with Morgan Stanley.

Write to Matt Jarzemsky at [e-mail]

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