By EVELYN M. RUSLI
Andrew Mason, the chief of Groupon, was all smiles at the Nasdaq MarketSite as shares of his company began trading.Brendan McDermid/ReutersAndrew Mason, the chief of Groupon, was all smiles at the Nasdaq MarketSite as shares of his company began trading.
DESCRIPTION
It’s good to be a banker — at least one working for Groupon.
Last week, Groupon sold $700 million shares in its initial public offering , becoming the largest I.P.O. for an American tech company since Google went public in 2004. Shares surged 40 percent at the open, before settling at $26 a share, or a valuation of $16.5 billion. Its underwriters, led by Morgan Stanley, Goldman Sachs and Credit Suisse, had the option to sell an additional 4.5 million shares.
The highly anticipated offering was a big win for the company’s management team and its early investors, including its venture capital backers, Accel Partners and New Enterprise Associates. But it was also a nice pay day for the company’s many underwriters (14 in total), who racked up $42 million in fees, led by Morgan Stanley, which made a tidy sum of $17.4 million.
Here is a breakdown, according to data from Standard & Poor’s Capital IQ:
Name Role Fee($)
Morgan Stanley Co-Lead Underwriter 17,360,000
Goldman Sachs Co-Lead Underwriter 8,680,000
Credit Suisse Securities (USA) Co-Lead Underwriter 3,080,000
Allen & Company Underwriter 2,799,998
Barclays Capital Underwriter 1,400,000
BofA Merrill Lynch, Pierce, Fenner & Smith Underwriter 1,400,000
Citigroup Global Markets Underwriter 1,400,000
Deutsche Bank Securities Underwriter 1,400,000
J.P. Morgan Securities Underwriter 1,400,000
Wells Fargo Securities Underwriter 1,400,000
William Blair & Company Underwriter 840,000
Loop Capital Markets Underwriter 280,000
RBC Capital Markets Underwriter 280,000
The Williams Capital Group Underwriter 280,000
Total 42,000,000
http://dealbook.nytimes.com/2011/11/08/bankers-reap-windfall-in-groupon-i-p-o/?partner=rss&emc=rss
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