Houlihan Lokey, a global independent investment bank owned by Japanese investment firm Orix, filed on Friday with the SEC to raise up to $100 million in an initial public offering. However, the deal size could be a placeholder for an IPO that we estimate could raise $200 million.
Selling shareholders Orix and management will receive all IPO proceeds. The company plans to offer a quarterly dividend.
The last investment bank IPO, Moelis & Company (MC), raised $163 million in an April 2014 offering. It trades 12% above its offer price.
The Los Angeles, CA-based company, which was founded in 1972 and booked $681 million in sales for the 12 months ended March 31, 2015, plans to list on the NYSE under the symbol HLI. Houlihan Lokey initially filed confidentially on May 8, 2015. BofA Merrill Lynch, Goldman Sachs, UBS Investment Bank, Keefe Bruyette Woods and Houlihan Lokey are the joint bookrunners on the deal. No pricing terms were disclosed.
