Bloomberg News reports that the banks received 1.2 percent of the proceeds in fees, according to a regulatory filing. The total IPO size increased to $25 billion the company said Monday, after the underwriters exercised the option to purchase 15 percent more shares.
Pulling off Alibaba’s IPO is a coup for the five lead banks, which were all given an equal stake in the deal’s success. The fee structure is different from typical IPOs in the U.S., where there’s one lead manager that is awarded much of the fees. Alibaba also used an incentive bonus to coax better performance from underwriters.
Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase and Morgan Stanley each took home 15.7 percent of the fees, while Citigroup’s share represented 7.9 percent, according to a regulatory filing.
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