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The 31 underwriters handling Facebook’s IPO will get a fee of 1.1%, according to a Bloomberg report this afternoon.
That’s a much smaller rate than typical, Bloomberg says. The average from 127 IPOs last year was 5.48%.
But the bankers were probably keen to get in regardless because the absolute size of their payout will be just fine.
Facebook is set to be the biggest tech company IPO in history, netting $5 billion for the company.
That means the underwriters will get $55 million. Morgan Stanley, which is leading the deal, will probably get a bigger cut than the rest.
The IPO is expected in May.
Although Facebook’s IPO is huge by Silicon Valley standards, other companies have raised more money in public offerings: General Motors raised more than $20 billion in its 2010 IPO, for instance.