Goldman Sachs is leading Twitter’s IPO, with help from firms including Morgan Stanley and JPMorgan Chase, regulatory filings show. The fee pool is typically split unevenly among underwriters, with larger shares going to banks that are more actively involved in the process.
At that rate, Twitter’s banker fees would reflect a smaller proportion than underwriters have received in nearly every U.S. initial offering this year, data compiled by Bloomberg show. While investment banks use fee income as a major measure of success in deal underwriting, firms are sometimes willing to take a smaller share of proceeds for high-profile sales that may generate future business.
'Goldman being the first name on the S-1 has little to do with fees', Max Wolff, chief economist and strategist at ZT Wealth, said by phone from New York. 'This is about Goldman rebalancing itself as a serious leader and competing with Morgan Stanley’s dominant position in technology'.
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image: © Howard Lake