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Houlihan Lokey raises $220m in IPO

The public listing values the investment bank, which offers secondaries advisory services, at about $1.4bn.

Investment bank Houlihan Lokey went public on the New York Stock Exchange on Thursday, with the firm pricing the shares in its initial public offering lower than expected.

Los Angeles-based Houlihan Lokey, which works on mergers and acquisitions and offers secondaries advisory services, priced its IPO at $21 a share for 10.5 million shares of its Class A common stock, according to a statement from the firm. The listing raised about $220 million for the firm, which had earlier said it expected to price the shares at between $22 to $24 a share, according to reports.

The share price puts the value of the bank at about $1.4 billion, with around 54 million in Class B common stock being retained by the bank’s owners.

The bank’s shares were sold by Orix USA, which owns Houlihan Lokey and is part of Japan-based financial services group Orix, and by Houlihan Lokey’s shareholders. Bank of America Merrill Lynch and Goldman Sachs are lead joint book-running managers for the offering, according to the statement.

In 2009 the bank formed its illiquid financial assets practice, co-headed by Jeffrey Hammer and Paul Sanabria, to focus on the secondaries market where it identifies and advises on potential deals for Houlihan’s clients.

Houlihan Lokey will not receive any proceeds from the offering, including from any exercise by the underwriters of their option to purchase additional shares.

The shares closed on Thursday at $22.40.