The latest crop of Saudi Arabia’s market newcomers is proving just as frugal when it comes to paying investment bankers.
Despite attracting $125 billion in orders from investors for an initial public offering of Saudi Telecom Co.’s internet-services unit, banks including Morgan Stanley and HSBC Holdings Plc are set to share just about $12 million in fees, Arabian Internet and Communications Services Co., also known as solutions by stc, said in its prospectus.
That’s just 1.3% of the offering value, compared with an average of about 5% or more for IPOs in the U.S. or Europe. Morgan Stanley alone had a bigger payday during UiPath Inc.’s $1.54 billion IPO in April, which generated a total of $67 million in fees.
The Saudi deal’s pot also gets split between a local bank, auditors and legal advisers -- and will even be used to cover the cost of printing the prospectus.
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