Lincoln International (LCLN.N) achieved a $2.3 billion valuation after its shares soared by 12.6% in their New York debut on Wednesday, as investors eagerly snapped up a rare opportunity to acquire equity in a U.S. investment bank. The stock opened at $22.51 apiece, comfortably above its offer price of $20. Founded in 1996, Lincoln is a private capital markets-focused mid-market investment bank that has grown significantly to over 1,400 people across 14 countries.
Lincoln and its selling stockholders divested 21 million shares at the top of the marketed range of $18 to $20 each, collectively raising $421 million in the initial public offering. This offering represents the largest U.S. investment bank IPO since Lazard’s $855 million listing in 2005, according to LSEG data. Investment bank IPOs have been notably scarce in New York over the past decade, a trend Lincoln CEO Rob Brown addressed, stating, “Our market continues to consolidate. Having a permanent capital base will allow us to participate in that consolidation in more effective and efficient ways.”
The listing marks a significant milestone for Lincoln, which had been planning to go public for some time, awaiting the opportune moment after the 2022 inflation spike drove up interest rates. The firm anticipates private equity will remain a crucial growth engine, with sponsors holding elevated levels of dry powder and facing mounting pressure to return more cash to investors. Bankers are optimistic that the dealmaking resurgence will extend to the mid-market sector, a sentiment echoed by Mr Brown, who noted, “That ice dam is melting. We think that melting is going to continue really for the foreseeable future.”
