Morgan Stanley has plans to spin off its subsidiary, MSCI Inc., today filing for an IPO. The IPO is expected to take place by the end of the year. Morgan Stanley plans to initially sell only a minority stake in the company. MSCI's newfound independence may result in more creative indexes and more volume as the business grows on its own.

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Morgan Stanley (NYSE: MS) announced today that its subsidiary, MSCI Inc., has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) for the initial public offering (IPO) of its Class A common stock. The IPO is expected to take place by the end of 2007.

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. MSCI was previously known as Morgan Stanley Capital International Inc.

Morgan Stanley intends to sell a minority interest in MSCI in the IPO. The amount of proceeds received in the IPO will depend on market conditions and on other factors.

Morgan Stanley & Co. Incorporated will serve as book-running manager of the offering. Copies of the preliminary prospectus, when they become available, may be obtained from Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, New York 10036.

A registration statement relating to MSCI’s Class A common stock has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 32 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. 

Edited by: Erin Kello


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