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Investment Bank's Fees?


Hi, i was wondering if someone could please tell me what investment bank charge a company for underwriting them, is it a percenatge of the total cost that the company has to pay in order to go public or what? It would be very helpful, thanks.

$2.00

For a small company usally at least a half million in cash up front, plus a supstantial amount of shares.For a big company a lot more.

its NOT $2 the underwriters are assuming the risks and therefore they will want their money back when it goes public. The correct answer is it varies from company to company. I do not think there is a one set guideline for how much they charge.

Its usually a fraction of the company's total price... it will usually be something like 5-8% if its a small deal (couple hundred million) and the I-Bankers' percentage take scales down from there as the size of the offering grows.

I think it's $2.00

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