Morgan Stanley Falls 3.4% as $720 Million AI IPO Enters Queue

Morgan Stanley MS, the investment-banking and wealth-management company, landed a role in the underwriting group for Accelevation's planned $720 million initial public offering. Shares dropped approximately 3.4% to $199.14 Tuesday morning.

Accelevation wants to sell 30 million shares at $20 to $24 apiece, potentially valuing the AI data-center infrastructure supplier at $5.37 billion. The company builds the power-distribution, cooling and modular systems that keep compute-heavy facilities running. The deal arrives as Morgan Stanley's second-quarter equity-underwriting revenue surged 70.2% to $851 million.

At the proposed top price, the offering would represent about 13.4% of Accelevation's targeted valuation, creating a meaningful public float and a real test of investor appetite for AI infrastructure. The picture adds a valuation warning: Morgan Stanley trades 11.71% above its $178.27 GF Value estimate. The bank's exact payday remains unknown because several underwriters share the mandate, but the broader message is clearAI infrastructure is feeding Wall Street's recovering deal machine.