Facebook underwriters to get 1.1 pct fee: Source

Facebook will pay just a 1.1 percent fee to underwriters of its initial public offering.

San Francisco: Facebook will pay just a 1.1 percent fee to underwriters of its initial public offering, according to a source with knowledge of the company`s plans, doling out a much slimmer than typical payout.
Sources had said the company`s underwriters would swallow a fee much lower than the 6 percent to 7 percent that is typical on Wall Street, because of the prestige of being associated with Silicon Valley`s largest ever IPO, as well as the promise of being bankers in future to the world`s largest social network.

Facebook`s underwriters include Morgan Stanley, JP Morgan, Goldman Sachs, Bank of America, Barclays and Allen & Co. Earlier this month, the company also named an additional 25 banks as underwriters.

The news was reported earlier by Bloomberg. Facebook could not be reached immediately for comment.

Bureau Report