Facebook Will Reportedly Pay 1.1% To IPO Bankers

Facebook will pay underwriters just 1.1 percent of the $5 billion initial public offer, amounting to $55 million in fees to be split by 31 banks.

Facebook will pay underwriters just 1.1 percent of the $5 billion initial public offer, according to a Bloomberg report citing two anonymous sources.

Bloomberg said the 31 investment banks underwriting the IPO would “share” this fee, which amounts to about one-fifth of the percentage that underwriters usually get, since the average last year was about 5.48 percent.

The lead underwriter, Morgan Stanley, would probably get a bigger proportion of the fee than the other banks, which is typical.

However, while the percentage is lower than the typical IPO, the deal size is a lot larger, keeping the overall size of the take rather hefty: $55 million in fees will be split by 31 banks.

While

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