All the banks involved in the Twitter initial public offering will not cash in as much as Goldman Sachs, it looks like they will collect a nice sum of $US20 million in fees.
Goldman Sachs Twitter IPO prices looks promising, and WSJ were told that Goldman Sachs would earn 38.5% of the fees. This figure is more than twice any other bank is getting if share prices stay as they are.
The Twitter IPO price per share was set at $17 to $20 US, this is great if underwriters sell the max amount of these shares. Other banks have said to only be getting around $10 million only if the deal is for $1.6 billion.
WSJ reports that Morgan Stanley will receive 18% of the fees, which adds up to a healthy $9.4 million, 15% for J.P. Morgan Chase and both Deutsche Bank and America Merrill Lynch will get around 8% each.
It has been said that Twitter is paying the lowest percentage fee and known as a gross spread – of any technology IPO since Facebook paid 1.1% of its $16 billion offering last year to the banks.
What are your views on the Twitter IPO?