THE APEX TIMES
Goldman Sachs and Morgan Stanley fight for “lead left” underwriting slot as OpenAI and Anthropic IPOs approach
A Wall Street underwriter designation known as “lead left” could determine which bank gets the first crack at share allocation for the AI IPOs many investors are lining up for, and Goldman Sachs is already holding that coveted spot in a separate high-profile deal.
Goldman Sachs and Morgan Stanley are locked in a competition for what’s being described as the industry’s most influential bookkeeping line item in hot IPOs: the “lead left” book-running position that appears on the front of an issuer’s filing. With major AI debuts from OpenAI and Anthropic looming, the banks are reportedly vying for the slot that can translate into outsized allocations for favored institutional investors and, potentially, larger profit pools for the lead underwriter.
The advantage is not just symbolic. According to IPO research professor Jay Ritter of the University of Florida, the lead left bank has the power to shape how shares are distributed across investors, while other underwriters typically share in underwriting fees but do not participate in the share allocation process. In a market where allocations can drive both short-term performance and investor satisfaction, that control can be a differentiator.
The jockeying comes as Goldman Sachs already appears to have captured at least one “lead left” prize this week. Fortune reported that Goldman won the lead left book runner position for a SpaceX offering scheduled for June 12. That matters because it gives the bank a track record for landing the top allocation role, even as it seeks to repeat the outcome on the next wave of large technology IPOs tied to AI.
Both banks, meanwhile, are expected to remain prominent on the two AI deals. Reporting cited by Fortune says OpenAI and Anthropic have chosen Goldman Sachs and Morgan Stanley as two top book runners, but the issuers have not publicly determined which bank will receive the “lead left” designation on their S-1 prospectuses. That leaves investors and dealers watching for which bank ultimately gets the leftmost slot as a proxy for who will negotiate allocations most aggressively.
The stakes for the banks are amplified by the size of the potential investor bidding. Fortune describes major hedge funds and other institutional investors as “super-hungry” for the largest possible allocations, a dynamic that can intensify competition among underwriters. The report also notes that the broader syndicate for these mega-IPOs could include roughly two dozen additional banks placed lower on the lineup.
Industry context also plays a role in why only two banks are seen as realistically contending for the top slot. Fortune described Goldman and Morgan Stanley as the two investment banks with the largest market shares in tech IPOs, which affects who issuers and investors view as best positioned to lead the book-running effort and marshal demand.
Still, the precise commercial terms behind any “lead left” contest are not fully disclosed in the reporting. The issuers’ underwriting fee splits, the internal allocation rules under different investor categories, and the full economic value of the designation are not described in the cited accounts. In addition, OpenAI and Anthropic have not been shown in this reporting to confirm timing, valuation targets, or who the lead left slot will ultimately go to.
In the near term, the main indicates to watch are practical rather than theoretical: which bank ends up listed as the leftmost book runner on the OpenAI and Anthropic S-1 prospectuses, whether the deals’ syndicates expand beyond the two top banks, and how investors respond when allocation expectations meet actual pricing and initial trading.
Why It Matters
- The “lead left” designation can affect IPO share allocation dynamics, influencing which investors get larger blocks in the opening round.
- If investors infer “lead left” from prospectus positioning, the designation can become a market announcement for who is most effective at building book demand.
- The winner stands to gain both reputational momentum and potentially greater economic upside through allocation-driven investor relationships.
- The outcome may offer a window into how aggressively major Wall Street banks are competing for AI-related mandate leadership as the IPO pipeline heats up.
Sources
Key Facts
- Goldman Sachs and Morgan Stanley are reported to be competing for the IPO “lead left” book-running position for anticipated OpenAI and Anthropic filings.
- A reported benefit of “lead left” is allocation influence, with the lead left bank able to determine how shares are distributed among funds.
- Goldman Sachs is reported to have already secured the lead left position for a SpaceX offering scheduled for June 12.
- Reporting says both AI issuers have selected Goldman and Morgan Stanley as top book runners, but have not decided which bank gets the “lead left” designation.
- The contest is described as being driven by demand from large institutional investors seeking larger IPO allocations.
- Neither the AI issuers nor the banks in the cited reporting have provided final confirmation of who will receive “lead left” on the OpenAI and Anthropic S-1 prospectuses.
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