Goldman IPO Raises $3.66 Billion

Goldman, Sachs & Co. became the last of the major Wall Street investment firms to go public, as its long-delayed initial public stock offering raised $3.66 billion Monday--making it the second-largest IPO in U.S. history.

The company sold 69 million shares at $53 each, near the upper end of the expected range of $45 to $55. Requests for shares totaled more than 10 times the amount Goldman offered.

At least among the lucky bidders who got stock, “Everyone walks out happy,” said Randall Roth, an analyst at Renaissance Capital Corp., which runs the IPO Plus Aftermarket Fund. “Portfolio managers know they didn’t buy it at an outrageous price, and Goldman [is happy] because they know they got a good price.”

The sale represents a 12.5% stake in the company, and values the entire firm at $29 billion.

Hank Paulson, Goldman’s CEO, will ring the opening bell on the New York Stock Exchange this morning, marking the end of Goldman’s 130-year private partnership. The stock’s ticker symbol is GS.

The sale ranks just behind Conoco’s record $4.5-billion IPO last year.

Goldman first tried to go public last fall after years of resistance from some of its partners. But the effort was shelved as financial markets were roiled by economic turmoil overseas.

The deal proceeds will provide the company with needed capital for growth--and an easier way for insiders to cash out as desired.

But with the mantle of a public company comes a level of scrutiny and responsibility to shareholders. Goldman Sachs, long a secretive and elite partnership, will now face public disclosure of its dealings, executive pay and policies.