Thursday, January 24, 2008

Buzz: RiskMetrics IPO

RiskMetrics priced their IPO at $17.50 after the market closed, which I compute to be about 18x a run-rate of 2007 adjusted EBITDA. This may seem like a lofty valuation, but given the current buzz in the market related to the Company's business - risk management - this seems like an opportunistic time for management to pursue an IPO. This deal (ticker RMG) will be followed heavily as the markets open on Friday, I wouldn't be surprised if it opened in the mid-20s.

The RiskMetrics offering follows the IPO success of MSCI (Ticker MXB), which offers risk management through its Barra unit. MSCI's well-received IPO rose 45% on its first day of trading and currently trades at around $32, up over 75% from its $18 IPO price.

Here is some coverage of the IPO:
WSJ Article
AP Article


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