Alibaba bankers earn $300m in fees

Pot Of Gold

Alibaba’s underwriters raked in $300m in fees after completing the largest initial public offering in history.

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.

Hit the link below to access the complete Bloomberg News article:

Alibaba Banks Bring Home $300 Million in Fees

BlackRock Urges Changes in ‘Broken’ Corporate Bond Market

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts