IPO’s Brewing for Pzena and Och-Ziff

by StockJockey

Friday, October 12, 2007 - 11:11 am

A rebound in the global markets has put a smile on the face of investment bankers everywhere. The stocks of many asset management firms, with the notable exception of Legg Mason, have raced to new highs, and we should see several new comps enter the sector before the end of the year.

Och-Ziff is prudently cutting the size of their deal, which will give the firm currency in which to retain talent, and perhaps tuck-in new strategies via acquisitions:

Och-Ziff Capital Management Group LLC, the hedge-fund manager run by former Goldman Sachs Group Inc. trader Daniel Och, plans to raise as much as $1.19 billion in an initial public offering, less than originally sought.

Och-Ziff will offer as many as 36 million shares at $30 to $33 apiece, according to a filing today with the U.S. Securities and Exchange Commission. Underwriters may sell an additional 5.4 million shares in the New York-based firm depending on demand.

The filing signals the worst of the stock-market turmoil, stemming from the subprime home-loan crisis, may be over. After Och-Ziff’s IPO, other firms including Kohlberg Kravis Roberts & Co. may follow through with their plans to go public. Bloomberg

Pzena Investment Management, who run money for John Hancock mutual funds, among others. will also tap the public markets.

Both firms run nearly $30 billion, and will take advantage of the expanding valuations of the peer group to bring their own deals to market. If priced correctly we would look for these deals to turn our better than the Blackstone and Fortress IPO’s.

Och-Ziff Capital Seeks Up to $1.19 billion in IPO
Bloomberg

Pzena May Raise $109.8 Million in Initial Offering
Bloomberg
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