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.