News

Twitter Would Love To Hear How Little You’ll Take For A Piece Of The IPO Of The Year

Goldman, the Morgans and Brian Moynihan are already in. How low are you willing to go to join them?

Twitter is in talks to add additional banks to its underwriting syndicate for its upcoming initial public offering and in the process of finalizing the fee structure, according to three people familiar with the matter.

Typically, underwriters receive around 7 percent of overall IPO proceeds, but larger offerings can command a lower fee. Underwriters were willing to split a fee pool of just 1.1 percent for Facebook Inc’s $16 billion IPO because of the deal size, as well as the prestige of being associated with a high-profile deal.

It was not clear what percentage of the potential IPO proceeds Twitter has proposed to pay underwriters….

Twitter’s valuation is estimated at around $15 billion by analysts. Assuming that it sells around 10 percent of its shares and an overall fee would come to 4 to 5 percent, underwriters could stand to split a fee pool of around $60 million to $70 million.

Twitter in talks to add banks to IPO, set fees: sources [Reuters]

7 comments
(hidden for your protection)
Show all comments

7 Responses to “Twitter Would Love To Hear How Little You’ll Take For A Piece Of The IPO Of The Year”

  1. NASDAQ says:

    Submit your sell orders early. With the network traffic we expect to see, our exchange should crash fairly early in the day.

    beep

  2. Quant me maybe ... says:

    I will take 140 shares #lengthofatweet and an additional 140 #OTM short contracts at every break becaUse #theydontmakemoney

  3. #UBS says:

    I'll take a million shares

    I'll take a million shares

    I'll take a million shares

  4. Guest says:

    Yes, we will "split" the fees..

Our Sites

  • Above the Law
  • How Appealing
  • ATL Redline
  • Breaking Defense
  • Breaking Energy
  • Breaking Gov
  • Dealbreaker
  • Fashonista
  •