Morgan Stanley's MSCI soars in market debut

Morgan Stanley's large ownership stake also creates a "share overhang," or the possibility that a large amount of MSCI stock could be dumped on the market, according to the note.

Underwriters, led by Morgan Stanley, have the option to purchase an additional 2.1 million shares.

OTHER MARKET DEBUTS

MSCI was the top performer among a quartet of new issues on Thursday. By midday, the surge in its stock price had eclipsed performance of Virtual Radiologic (VRAD.O), up 13.5 percent at $19.30; EnteroMedics Inc (ETRM.O), unchanged at $8; and EnergySolutions (ES.N), up 0.9 percent at $23.20.

All of companies that made their debuts on Thursday had IPOs that had priced in line with, or exceeded expectations.

Late on Wednesday, however, two expected new issues were postponed because of market conditions, according to underwriters.

Reliant Technologies pulled plans to sell 4.7 million shares and list its stock on Nasdaq, while London-based Global Ship Lease indefinitely postponed its IPO of 18.8 million shares and a planned listing on the New York Stock Exchange.

(Additional reporting by Joseph Giannone, editing by Lisa Von Ahn/Dave Zimmerman)