Goldman Sachs Wins Stabilization Role for Pinterest IPO

(Bloomberg) -- Goldman Sachs Group Inc. will take on the profitable job of overseeing Pinterest Inc.’s stock in the early hours of trading after the image-search site goes public, people familiar with the matter said.

Goldman Sachs is one of three lead underwriters for the initial public offering, alongside JPMorgan Chase & Co. and Allen & Co., according to Pinterest’s filing with the U.S. Securities and Exchange Commission.

The job of the stabilization agent, also known as syndicate trading manager, is to make the first hours of trading go smoothly. The role, which includes managing additional shares allotted underwriters in a so-called greenshoe option, is a coveted one for banks because it also comes with the potential for more commissions on trades.

A representative for San Francisco-based Pinterest declined to comment. A representative from Goldman Sachs didn’t respond to a request for comment.

In its IPO filing in March, Pinterest reported steady revenue gains with narrowing losses, as well as a big bet on overseas expansion. The company, which acts as a digital scrapbook, revealed plans for a dual class structure, with its Class B shares to carry the voting rights of 20 ordinary shares. The company’s co-founders and executives will retain significant voting power after the offering, according to the filing.

Pinterest’s roadshow, in which underwriters will pitch the IPO to potential investors, is expected to begin this month, a person familiar with the matter has said.

While the proposed terms of the share sale likely won’t be disclosed until a later filing, Pinterest could raise about $1.5 billion in an IPO valuing it at $12 billion or more, people familiar with the matter have said. The company plans to list on the New York Stock Exchange under the ticker PINS.

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