US investment bank Morgan Stanley has disclosed plans to sell a minority interest in its risk analytics subsidiary MSCI through an initial public offering (IPO) later this year.
MSCI is a provider of investment decision support tools to equity, fixed income and multi-asset class investment institutions. These tools include the MSCI indices and the Barra portfolio risk analytics technology, which bank acquired when it bought out risk technology vendor Barra in 2004.
Morgan Stanley currently owns 96.6% of the outstanding shares of MSCI, with Capital Group International holding the remainder of the shares. According to press reports the bank expects to raise up to $200 million in the IPO.
The offering is expected to be completed by the end of 2007, subject to market conditions and regulatory approval.
John Mack, Chairman and CEO of Morgan Stanley, says: "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.
The US bank says it expects to ultimately divest its remaining ownership interest in MSCI, although a final decision has not yet been made.