Lincoln International Inc., a Chicago-based investment banking advisory firm, has attracted demand for multiple times the shares available in its planned initial public offering, according to a Bloomberg report. The order book contains sizable commitments from long-only institutional investors.
The company and selling stockholders are proposing to sell almost 21 million shares at an indicated price range of $18 to $20 per share, which would raise as much as $421 million if the top of the range is reached. The IPO timetable calls for the company to stop accepting orders at 4 p.m. New York time on Monday, with a target to set the offering price once the market closes on Tuesday.
Lincoln’s SEC filings show that the IPO terms, measured at the midpoint of the stated price range, place the company at a discount on price-to-earnings multiples relative to peer Houlihan Lokey Inc. The firm previously indicated it was seeking a valuation of up to roughly $2 billion, and the shares are expected to begin trading on the New York Stock Exchange under the ticker symbol LCLN.
A group of investment banks is leading the offering, including Goldman Sachs Group Inc., Morgan Stanley, Bank of Montreal, Citizens Capital Markets and Evercore Inc. These firms are advising and managing the distribution of the shares to institutional and other investors ahead of pricing.
Context and process
The bookbuilding process remains active through Monday afternoon, when the company will stop taking orders, and the pricing decision is scheduled for after the market close on Tuesday. The indicated price band and the presence of significant orders from buy-and-hold investors are central inputs to the final pricing and allocation decisions.
Valuation note
At the midpoint of the proposed $18 to $20 range, Lincoln’s valuation on a price-to-earnings basis appears lower than that of Houlihan Lokey Inc., as disclosed in its SEC filings. Separately, Lincoln has publicly stated a target valuation in the vicinity of $2 billion.
What to watch next
- Order book developments up to the 4 p.m. New York cutoff on Monday.
- Final pricing and share allocation after markets close on Tuesday.
- Initial trading once shares begin trading on the NYSE as LCLN.
This report summarizes the current status of Lincoln International’s IPO as disclosed in public filings and in coverage of the offering.