Five underwriters for a $75 million IPO sure shows how hungry investment banks are to participate in the few IPOs coming to market.
That’s not a lot of money to be made off of fees, which are typically 7% of the total offering, less expenses. (Then again, the banks listed on the S-1 have something to boast about given that IPOs have been a rarity this year.)
Here are our estimates of what we think the underwriters of ACOM can expect to take home following the offering given typical splits of underwriting fees:
- Morgan Stanley (33%): $1.5 million
- BofA Merrill Lynch (33%): $1.5 million
- Jefferies & Company (11%): $500,000
- Piper Jaffray (11%): $500,000
- BMO Capital Markets (11%): $500,000
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