Investment bank Lincoln International targets $2 billion valuation in US IPO

((Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer: https://bit.ly/rtrsauto)) (Added analyst commentary and background information from paragraph 4) by Arasu Kannagi Basil

Lincoln International said Monday it is targeting a valuation of up to about $2 billion in its New York IPO, in what could be one of the largest IPOs by a U.S. investment bank in nearly two decades.

The Chicago, Illinois-based boutique investment bank and selling shareholders are seeking to raise up to $421 million in the IPO by offering nearly 21 million shares priced between $18 and $20 each.

The IPO market is experiencing a strong resurgence of activity this spring after a brief lull in March, with issuers ignoring geopolitical uncertainties to move forward with their IPO plans.

“All it took was a slight opening of the IPO window for companies to rush to take advantage,†said Matt Kennedy, senior strategist at Renaissance Capital, a provider of research and IPO-focused exchange-traded funds (ETFs).

He warned, however, that “the IPO window appears somewhat precarious†, with the war in Iran weighing on markets and investors “ready to dump their shares if loopholes appear†.

Founded in 1996 by Jim Lawson and Rob Barr, Lincoln is a middle-market focused investment bank advising private capital markets on the sale and purchase of businesses, obtaining financing and valuing their organization or portfolio.

It operates from more than 30 offices across 14 countries and had approximately 1,400 professionals as of December 31.

Lincoln, whose order backlog was at a record high as of Dec. 31, reported net profit of $1.9 million on revenue of $157.8 million in the quarter ended March 31, compared with net profit of $24 million on revenue of $132.2 million a year earlier. earlier.

RARE IPO OF AN INVESTMENT BANK

Investment bank IPOs in New York have been rare over the past two decades, and Lincoln’s offering is expected to be among the largest since Lazard’s $855 million IPO in 2005, according to Dealogic data.

The investment banks Moelis MC.N and Houlihan Lokey

HLI.N went public in New York through traditional IPOs in 2014 and 2015, respectively.

More recently, Perella Weinberg Partners PWP.O listed in New York in 2021 via a merger with Betsy Cohen’s blank check company.

Lincoln’s offering also comes at a good time for M&A advisors as deals continue to accelerate in 2026, supported by a more favorable regulatory regime in the United States.

Nearly $2 trillion in transactions have been announced since the start of the year, 33% more than the same period last year, according to Dealogic data.

Goldman Sachs and Morgan Stanley are the joint lead managers of the transaction. Lincoln will be listed on the New York Stock Exchange under the symbol “LCLN†.