Greetings Term Sheeters. Finance reporter Luisa Beltran here.
The long slumbering IPO market appears to be waking up. A trio of high-profile technology IPOs, led by semiconductor firm Arm, are expected to launch in September. The IPOs are generating a ton of excitement and I’m told that bankers are getting calls from companies looking to move up their listing plans.
But while it takes scores of bankers, lawyers, and entry-level analysts to pull off an IPO, there’s one position that’s the most coveted of all: lead left bookrunner. This banker, which typically is listed first amongst the underwriters or the “lead left,” has the responsibility of leading the syndicate, or the group of banks, through the IPO process. Companies typically pick the lead left banker at the start of the IPO process, explains Carina Antweil, a partner at law firm Baker Botts, who is deputy chair of the Houston corporate department, and has represented several companies that have gone public. There is a “bake off” where investment banks will compete for the role as the lead bookrunner. Many of the Wall Street banks will pitch their work and prior experience to get the role, Antweil said.
The lead left banker functions as a trusted advisor to the company, walking side-by-side with them from start to finish of the IPO, Antweil said. Their goal is to get the company in the best position when they go to market, she said. They participate in structuring decisions at the outset, decide how the IPO will be marketed, they lead the road show, and are very involved in preparing the business disclosure for the Form S-1 that is filed with the SEC, she said.
And when it comes to this fall’s slate of IPOs, it appears Goldman has won some bragging rights. Goldman is the lead bookrunner for Instacart and Klaviyo, and is one of four banks heading up the Arm IPO. Birkenstock, the shoe brand, is expected to go public this fall; Goldman is serving as their lead left bookrunner as well. Goldman’s other deals in 2023 include serving as lead left on the IPOs of Kenvue, ODDITY Tech and Credo Technology Group, as well as Mobileye, which went public in October.
So far this year, Goldman is the lead bookrunner overall for U.S. listed traditional IPOs, with eight offerings valued at $840 million and an 8.2% market share, according to Dealogic. Running a close second is BofA Securities with eight transactions totaling $826 million and an 8.1% market share. JPMorgan is ranked third with seven deals valued at $778 million and a 7.6% market share.
If Arm, Klaviyo, and Instacart perform well, I’m told another 20 to 30 companies could possibly list this year. Meaning plenty of “left leads” to fight for.
The goings on at Greylock…Renowned investor and LinkedIn cofounder Reid Hoffman is stepping back at Greylock Partners as he focuses more attention on artificial intelligence efforts, according to a new report from the Wall Street Journal. Greylock has reportedly told investors Hoffman will not be a general partner for the new $1 billion fund the firm is raising. “Reid continues to be closely engaged within Greylock as a strategic partner and colleague,” a Greylock spokeswoman told the Journal. —Jessica Mathews
Have a great day,
Luisa Beltran
Twitter:@LuisaRBeltran
Email: luisa.beltran@fortune.com
Submit a deal for the Term Sheet newsletter here.
Joe Abrams curated the deals section of today’s newsletter.
