Goldman Sachs is in the spotlight as tech firms test IPO market
The return of large tech IPOs this week after a prolonged drought isn't just a test of investors' appetite for risky new offerings — it's a key moment for Wall Street's top advisor, Goldman Sachs.
Chip designer Arm is expected to begin trading Thursday in the year's biggest listing. Delivery firm Instacart and marketing automation platform Klaviyo are expected to list as soon as next week.
While they each operate in vastly different parts of the tech universe, the companies have one important thing in common: Goldman is a key advisor.
The stakes are high for everyone involved. Last year was the slowest for American IPOs in three decades, thanks to sharply higher interest rates, rising geopolitical tensions and the hangover from 2021 listings that fared poorly. Successful IPOs from Arm and others will boost confidence for CEOs waiting on the sidelines, and activity there would help revive other parts of finance including mergers and financing.
That would be meaningful for Goldman, which is more dependent on investment banking than rivals JPMorgan Chase and Morgan Stanley. Amid the industry's slump, Goldman has suffered the worst revenue decline this year among the six biggest U.S. banks, and CEO David Solomon has contended with internal dissent and departures tied to strategic errors and his leadership style.
«This is the core of the core of what Goldman Sachs does,» Mike Mayo, Wells Fargo banking analyst, said in a phone interview. «Expectations are high, and they're likely to meet those expectations. Should they fall short, there will be far more questions than anything we've seen so far.»
Goldman is lead-left advisor on Instacart and Klaviyo, meaning their bankers drive decisions, coordinate other banks and typically
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