Goldman Sachs Is Lined Up to Bank Millions from Twitter’s IPO
It seems like every day that a new piece of data regarding Twitter’s (NYSE:TWTR) highly anticipated initial public offering is leaked. Some of it is useful — like speculation about when the company will begin to roadshow its financials with prospective investors (the last week of October, if unnamed sources who spoke to Bloomberg are correct) — while other information is more superficial, but interesting.
The latest bit of information to slip through the cracks falls into that latter category — not entirely irrelevant, but not necessarily at the core of the investment thesis that is developing around the company. Sources told Bloomberg that Twitter will pay bankers fees of about 3.25 percent on the more than $1 billion the company is expected to raise in its IPO.
For some context, these fees are actually higher than those paid by Facebook (NASDAQ:FB), which had its IPO managed by the same team of banks, though with a different one in charge.