CORRECTED - CORRECTED-UPDATE 1-Pzena Investment IPO raises $109.8 mln, top o
(Corrects assets managed by Pzena to $28.9 "billion" from $28.9 "million") (Adds use of proceeds, financial detail, analyst research)
NEW YORK, Oct 24 (Reuters) - Pzena Investment Management Inc, a New York-based money manager with $28.9 billion in assets under management, raised $109.8 million on Wednesday with an initial public offering that priced at the top of expectations.
The 6.1 million share offering priced at $18 per share, compared with a forecast range of $16 to $18, according to an underwriter.
The firm, which was founded in 1995 and is an advisor on some John Hancock mutual funds, said it will use proceeds from the offering to buy out three non-employee members.
No employee members are selling any shares in the offering, Pzena added, in a registration filing with the U.S. Securities and Exchange Commission.
For the three months ended June 30, Pzena reported total revenue of $36.8 million and net income of $25 million. That compared with revenue of $27 million in the year-ago period, and a loss of $15.6 million.
A sizable chunk of Pzena's assets, about one-fifth, are tied to its relationship with John Hancock, a contract renewed annually, according to Renaissance Capital, an IPO research firm based in Greenwich, Connecticut.
Renaissance, in a research note, said that factor, and the firm's expansion plans pose some risks for investors. However, Pzena still looks like a good bet, according to Renaissance.
"Despite the stated risks, Pzena's impressive track record and strong financial performance speak to the firm's fundamental strengths," according to Renaissance, which added that Pzena's valuation is "unfairly discounted" relative to other asset managers.
Underwriters, led by Goldman Sachs (GS.N), UBS (UBSN.VX) and Banc of America (BAC.N), have the option to purchase an additional 915,000 shares to cover overallotments, according to an amended filing with the U.S. Securities and Exchange Commission.
The firm plans to trade its shares on the New York Stock Exchange under the symbol "PZN." (PZN.N) (Reporting by Lilla Zuill)
