Facebook IPO underwriting rate of 1.1% for ordinary 1/5

According to sources familiar with the Facebook plan, the company in planning an initial public offering (IPO), Facebook will be paid to the investment bank to raise 1.1% of the total funds as commission. According to Facebook's plan, the company through an initial public offering to raise $ 5,000,000,000 of funds.
According to sources, responsible for Facebook IPO underwriters will share this part of the commission. Facebook had already hired 31 investment banks as co-underwriters IPO. Among them, Morgan Stanley will serve as a Facebook IPO lead underwriter. Under normal circumstances, the lead underwriter in the IPO share of a larger portion of the total commission.
1.1% of the total funds raised as a commission, means that Facebook will only be one fifth of the investment bank to pay the usual commission standards. Bloomberg statistics show that in the last year, the U.S. stock market average commission standard of 127 initial public offerings, investment banks was 5.48%. However, when the IPO, investment banks typically will reduce the commission charged at the standard in large enterprises. Facebook's IPO enables investment banks to get more commission income, so they will choose to reduce the commission charged at the standard. As of now, Facebook spokesman Jonathan Slough (Jonathan Thaw) reported no comment.
Facebook in a regulatory filing earlier this month, the company has $ 8,000,000,000 credit facility, including a 5 billion U.S. dollars in five-year revolving credit facility and $ 3,000,000,000 for 364 days of transitional financing (bridge loan) . Facebook submit documents show that $ 3,000,000,000 of the bridge loan will be used to pay employees of the limited equity taxes, and $ 5 billion revolving loan will be used for working capital.
Facebook was announced, Citigroup, Credit Suisse, Deutsche Bank, the three banks in capital markets in Canada, Huang, and Wells Fargo has hired 25 investment banks involved in its size to $ 5 billion IPO, which makes participation in Facebook for the first time The number of bank public offering of 31.
As the world's largest social networking site, Facebook is currently the total number of users in the world has more than 845 million people, the company plans to raise $ 5 billion of funds through the IPO, the company's valuation up to $ 100 billion. Facebook 2011 revenue of $ 3.7 billion.