Facebook IPO watch: A insider said on Monday, Facebook will pay a 1.1% underwriting fee to the underwriters in the IPO (initial public offering), which is obviously lower than the regular level.
The insider pointed out that the underwriters will get a commission of 6-7% in a regular company’s IPO. The underwriters have agreed to reduce the commission rate in the Facebook IPO, and thus able to participate in the largest IPO in Silicon Valley history, and hope to continue to provide banking services for Facebook in the future.
Morgan Stanley, JP Morgan Chase, Goldman Sachs, Bank of America, Barclays Capital and Allen & Co are serving as the Facebook underwriters. Facebook announced to hire another 25 investment banks as underwriters earlier this month. Read more about the Facebook IPO underwriters.
Facebook has not commented on the latest news yet.