TWITTER has negotiated some of the lowest bankers’ fees for a public float of its size, according to a report from Bloomberg.
The social network is expected to pay a fee of about 3.25 per cent on the $1bn (£626.9m) it is seeking to raise from its public offering (IPO).
While the fees are not as low as Facebook, which negotiated an incredibly low fee of 1.1 per cent on the back of its reputation and the promise of future business for the 33 banks involved, they are considerably lower than the recent technology IPOs of LinkedIn ($352.8m raised at nine per cent fees) and Groupon ($700m raised at six per cent fees).
The average IPO fee this year globally is 4.5 per cent, with the US average slightly higher at 5.7 per cent.
Twitter has hired Goldman Sachs as lead underwriter and Morgan Stanley, JP Morgan Chase, Bank of America, Deutsche Bank, Allen & Co and Code Advisors for its IPO.