In this paper we will discuss about the
Goldman Sachs Group's IPO. Goldman has not been a typical public organization from its very establishment. However, in 1999, Goldman's IPO made a huge profit and ranked second in the world.
In 1999, Goldman Sachs Group's IPO collected 3.6 billion dollars form the public which made it the second ever largest IPO. The amount of capital of the investment bank reached up to 33 billion dollars due to that deal.
In the initial trade, Goldman's had issued 69 million shares who's price went to 76 from 53 per share, before the end of the day. As a non technology IPO, Goldman Sachs' performance was incredible.
However, the fact is that, Goldman is not like the other public companies which deal according to the traditional give and take policy with their competitors and shareholders. It has been maintaining a control over its stock placement for a long time.
- Goldman demits only 12.6% of its stock for the public.
- Almost 25% of the Goldman's stock had been given to the retail customers and out of that, 20% was captured by 420 brokers belonged to Goldman's elite group.