Morgan Stanley (MS) shares are soaring 5.52% in intraday trading, as the investment bank secures a potentially lucrative deal with private equity giant KKR & Co. The surge comes amid reports that KKR has hired Morgan Stanley to work on a possible initial public offering (IPO) for Japanese logistics operator Logisteed.

According to sources familiar with the matter, KKR recently met with Morgan Stanley to prepare for Logisteed's IPO, which could launch as early as 2027. This development signals a significant business opportunity for Morgan Stanley, potentially boosting its investment banking revenues and market position in the Asia-Pacific region.

The news highlights Morgan Stanley's strong position in the global IPO market and its ability to secure high-profile deals. Logisteed, formerly known as Hitachi Transport System, was acquired by KKR in early 2023 and subsequently delisted. The potential IPO suggests KKR's confidence in Logisteed's growth and value creation since the acquisition. While other banks are expected to join the deal later, Morgan Stanley's early involvement underscores its competitive edge in the investment banking sector.