Facebook has apparently taken its massive user base and immense popularity to heart. The company reportedly is dictating to Wall Street underwriters what it will pay in fees for its $5 billion initial public offering. Typically, these fees would range from 3 percent to 7 percent of the offering. However, Facebook is said to be allowing — and the banks are willing to accept — a fee of just 1.1 percent. Lead underwriters participating in the IPO include Morgan Stanley, JPMorgan, Goldman Sachs, Bank of America, Barclays, and Allen & Co. There are 25 other banks also participating as underwriters.
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Facebook's IPO Underwriters Aren't Complaining
Posted by: Erika Morphy March 21, 2012 05:00 AMFacebook has apparently taken its massive user base and immense popularity to heart. The company reportedly is dictating to Wall Street underwriters what it will pay in fees for its $5 billion initial public offering. Typically, these fees would range from 3 percent to 7 percent of the offering. However, Facebook is said to be allowing — and the banks are willing to accept — a fee of just 1.1 percent. Lead underwriters participating in the IPO include Morgan Stanley, JPMorgan, Goldman Sachs, Bank of America, Barclays, and Allen & Co. There are 25 other banks also participating as underwriters.