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Technology services firm Synechron confidentially files for 2024 IPO, sources say

By Echo Wang and Anirban Sen

NEW YORK (Reuters) - Technology and consulting services firm Synechron has confidentially filed for an initial public offering (IPO) that could happen as early as the first half of 2024, according to people familiar with the matter.

Synechron has tapped Goldman Sachs and JPMorgan Chase as the lead underwriters for its offering and is planning to make its IPO filing public in the coming weeks, said the sources, who requested anonymity as the discussions are confidential.

New York-based Synechron, which offers generative artificial intelligence services to its enterprise customers, is planning to raise roughly $400 million or more and target a valuation of about $3 billion from its IPO, one of the sources said, cautioning that the timing and the size of the IPO are subject to market conditions.

Synechron and Goldman did not immediately respond to requests for comment. JPMorgan declined to comment.

Synechron is the latest tech unicorn looking to tap the public markets, after social media platform Reddit and semiconductor connectivity services firm Astera Labs had successful share sales earlier this week. Reddit's shares are expected to start trading later on Thursday.

The offerings of Reddit and Astera are expected to provide a much-needed boost to a tech IPO market that has been largely moribund over the past two years due to market volatility and high interest rates.

Several large tech unicorns, which were forced to postpone IPO plans during that period, are starting to revive discussions with investment banks and other IPO advisers, as equity capital markets are starting to rebound.

Founded in 2001, Synechron provides IT and consulting services to industries such as financial services, insurance and technology. According to its website, Synechron has a global workforce of more than 15,000 employees and operates 48 offices in 19 countries.

(Reporting by Echo Wang and Anirban Sen in New York; Editing by Matthew Lewis)