Moelis Founder Poised to Sell $59.2 Million of Stock in OfferingMadeline McMahon
Moelis & Co. Chief Executive Officer Ken Moelis, who took his independent advisory firm public in April, is preparing to sell about $59.2 million of stock in an additional offering.
Moelis, 56, plans to dispose of 1.73 million shares held by family trusts, and the company is offering 1.54 million, according to a regulatory filing today. Existing shareholders of the New York-based firm, including the CEO, plan to sell a total of 3.96 million shares, up from 2.46 million disclosed in a filing last week. The stock closed at $34.22 today.
Proceeds from shares being sold by the company will be used to repurchase an equal number of shares or other equity interests from certain managing directors and employees, the bank said in a separate statement.
“The company is conducting the offering to facilitate organized liquidity in its Class A common stock and to increase the public float of its Class A common stock,” according to the statement.
After the secondary offering, Ken Moelis will beneficially own 2.07 million Class A shares of almost 19 million outstanding, according to the filing. The company’s founder, he will still hold 95 percent of voting power in the firm by owning a majority of Class B shares.
Goldman Sachs Group Inc. and Morgan Stanley are managing the sale with Moelis, according to the filing.