SpaceX is negotiating with Wall Street firms over the fees it will pay to banks involved in its upcoming initial public offering, according to Bloomberg reports. The company is seeking a lower fee rate than typically charged for IPOs, with people familiar with the matter saying SpaceX is aiming to pay less than 0.75% for the roughly $75 billion it plans to raise in the offering. Even with that reduced spread, the total fees to the banks are still expected to be substantial. Bloomberg estimates that the IPO could generate about $500 million for the underwriting banks, which would make it one of the largest fee events ever for firms that arrange public listings.
The lead banks are reported to be Goldman Sachs and Morgan Stanley, and they are positioned to receive a larger share of the overall fee pool than the other participating brokers, which number more than twenty. The reports focus on the fee negotiations and the expected scale of payments to the banks even after a potential reduction, rather than changes to timing or the IPO size itself.
