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]

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Comments (7)

  1. Posted by NASDAQ | September 19, 2013 at 5:06 PM

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

    beep

  2. Posted by Quant me maybe ... | September 19, 2013 at 6:39 PM

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

  3. Posted by Quant me maybe ... | September 19, 2013 at 6:40 PM

    #SMILEYFACE

  4. Posted by #UBS | September 19, 2013 at 8:15 PM

    I'll take a million shares

    I'll take a million shares

    I'll take a million shares

  5. Posted by TheHerd | September 20, 2013 at 10:28 AM

    this comment has been retweeted 1,000,000 times

    – the momentum following herd

  6. Posted by Guest | September 20, 2013 at 4:14 PM

    Under rated comment.

  7. Posted by Guest | September 20, 2013 at 7:04 PM

    Yes, we will "split" the fees..