NEW YORK (TheStreet) -- Moelis & Co., the newest investment bank to hit public stock markets, priced its initial public offering below an expected range, raising less money for the Kenneth Moelis-run M&A advisory firm.
Moelis said late on Tuesday the company priced its IPO at $25, a dollar below the low-point of a previously announced $26-to-$29 a share range, raising $163 million for the firm and its selling shareholders. That lower-than-expected IPO pricing may reflect a sagging of investor confidence in recent weeks, as stock markets have stumbled on investors' concerns over valuation.
Instead of selling 7.3 million shares, Moelis will sell 6.5 million Class A shares. The firm will trade on the New York Stock Exchange under ticker 'MC.'
The IPO will be the first major listing of a Wall Street investment bank since prior to the financial crisis.
Moelis & Co. is a boutique investment bank founded by former UBS and Donaldson Lufkin & Jenrette executive Kenneth Moelis. The firm's organizational structure will guarantee Mr. Moelis retains control of the company, given his majority holding of class B-shares that carry ten votes per Class A share.
According to filings, Moelis will own around 97% control of the company's voting power, allowing him autonomy to decide upon board directors, dividends and strategy.
Currently, publicly traded competitor investment banking advisory firms Evercore Partners (EVR), Lazard (LAZ) and Greehill (GHL) aren't controlled by founders or top executives. However, founders of publicly-traded private equity firms Apollo Global Management (APO), Blackstone Group (BX), Carlyle Group (CG), and KKR & Co. (KKR) do control general partner interests in their respective firms, allowing them to decide upon most operational issues.