Even the middle men made a fortune on Baba IPO# Stock
W*n
1 楼
Alibaba Banks Bring Home $261 Million in Fees
By Leslie Picker Sep 22, 2014 10:05 AM CT
Sept. 22 (Bloomberg) -- Wedbush Securities Technology Analyst Gil Luria
wieghs in on the Alibaba IPO. He speaks on “In The Loop.” (Source:
Bloomberg)
Alibaba Group Holding Ltd.’s underwriters raked in $300 million in fees
after completing the largest initial public offering in history.
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 today, 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 Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan
Chase & Co. and Morgan Stanley each took home 15.7 percent of the fees,
while Citigroup Inc.’s share represented 7.9 percent, according to a
regulatory filing today. Alibaba’s 28 other underwriters earned 1 percent
or less each, the filing showed.
Alibaba said that its underwriters bought an additional 48 million shares
from the company at the IPO price of $68 each. Including the “greenshoe,”
Alibaba was able to surpass the current IPO record held by Agricultural Bank
of China Ltd.’s $22.1 billion sale in 2010.
By Leslie Picker Sep 22, 2014 10:05 AM CT
Sept. 22 (Bloomberg) -- Wedbush Securities Technology Analyst Gil Luria
wieghs in on the Alibaba IPO. He speaks on “In The Loop.” (Source:
Bloomberg)
Alibaba Group Holding Ltd.’s underwriters raked in $300 million in fees
after completing the largest initial public offering in history.
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 today, 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 Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan
Chase & Co. and Morgan Stanley each took home 15.7 percent of the fees,
while Citigroup Inc.’s share represented 7.9 percent, according to a
regulatory filing today. Alibaba’s 28 other underwriters earned 1 percent
or less each, the filing showed.
Alibaba said that its underwriters bought an additional 48 million shares
from the company at the IPO price of $68 each. Including the “greenshoe,”
Alibaba was able to surpass the current IPO record held by Agricultural Bank
of China Ltd.’s $22.1 billion sale in 2010.
