MSCI Inc.'s Successful IPO: Which Indexer is Next?

It's boom times, baby. MSCI's (MXB) initial public offering soared 45% Thursday, as index lovers everywhere bid up the price of shares.

The stock, which priced at $18, closed the day at $26.10, valuing the company at $2.7 billion. Originally, the IPO was slated to price in the $14-$16/range, but that lifted to $16-$18 based on strong demand. Now, even $18 looks like a bargain. And all this comes at a time when global equity markets are teetering on thin ice.

At these prices, shares are trading at a P/E ratio around 35, which is more than double the company's growth rate (17%).

MSCI CEO Henry Fernandez said in a Reuters article that the company expects to expand by "creating new indexes for emerging markets and from development in its fastest-growing area, the use of its indexes by exchange-traded and investment funds."

I can't wait to see it.

But I also can't wait to see if this has an impact on other index providers. If you can get 35 times earnings for an index business, will folks like the Financial Times, McGraw-Hill (MHP) and News Corp. (NWS) think about spinning off their indexing units?

I'm not saying it's likely. But it's more likely today than it was 72 hours ago.

Written by Matthew Hougan