Facebook Underwriters Will Reportedly Earn 1.1%, One-Fifth Of The Average Rate

Posted on Mar 20 2012 - 4:31am by Editorial Staff

Facebook most awaited thing – its “giant” IPO over which we all are waiting for – adding more flurry to it – the world’s largest social giant will pay its underwriters a fee of just 1.1 percent of the deal, according to Bloomberg. It is already keen to be expected that with Facebook’s IPO thousands of millionaires will be make out of its shareholders.

There are 31 underwriters who are writing up the IPO, which are led by Morgan Stanley usually expect a payment of 3-7 percent, while according to Bloomberg last year its recorded an average of 5.48 percent paid out in 127 offerings. The other underwriters includes Goldman Sachs, Bank of America and J.P. Morgan, which will share the fee of 1.1 percent as the offering could generate more bigger business opportunities through the social giant.

(Image Source: Facebook, Featured Image)

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.