Morgan Stanley Vies with Goldman for Lead-Left Bookrunner Spots on OpenAI and Anthropic IPOs
MS•Goldman Sachs and Morgan Stanley are battling for lead-left bookrunner slots on the OpenAI and Anthropic IPOs, each expected to rank among Wall Street’s largest tech debuts and deliver multibillion-dollar underwriting fees via share-allocation power. Goldman clinched lead-left status on SpaceX’s June 12 IPO, underlining the lucrative stakes.
1. Competition for Lead-Left Roles
Goldman Sachs and Morgan Stanley currently hold the largest market shares in tech IPO underwriting and are in contention for the all-important lead-left bookrunner slot on the anticipated OpenAI and Anthropic offerings. Goldman has already secured the lead-left position for SpaceX’s June 12 IPO, intensifying the rivalry for these marquee deals.
2. Importance of Lead-Left Designation
The bank designated as lead-left determines the allocation of shares to institutional investors and claims a disproportionate share of the underwriting fees, while other syndicate members split remaining profits and provide analyst coverage without controlling allocations.
3. Soft Dollar Incentives
Institutional investors—hedge funds, mutual funds, insurers and endowments—are using soft dollars, defined as commission dollars exceeding execution costs, to curry favor with both banks. By allocating soft dollars to Goldman and Morgan Stanley, they aim to maximize share allocations regardless of which bank ultimately wins the lead-left role.
