According to TechFlow, citing a Wall Street Journal report based on regulatory filings and people familiar with the matter, the total underwriting fees for SpaceX’s initial public offering are expected to be about $500 million. The figure represents roughly 0.7% of the company’s reported $75 billion fundraising size. The report places the expected fee pool, the fundraising scale, and the fee ratio in the same context, outlining the revenue framework for the investment banks involved in the transaction.
Goldman Sachs and Morgan Stanley lead the fee allocation
Within the underwriting group, Goldman Sachs and Morgan Stanley are serving as lead banks and are set to receive the largest portions of the fee distribution. People familiar with the matter said the two institutions together are expected to receive about 40% of the total underwriting fees. Based on the estimated $500 million fee pool, that would translate into about $100 million in revenue for each of Goldman Sachs and Morgan Stanley.
Bank of America, Citigroup, and JPMorgan Chase follow
The report also stated that Bank of America, Citigroup, and JPMorgan Chase are each expected to receive around $75 million in underwriting revenue. Other financial institutions participating in the underwriting process are expected to receive about $10 million each or less. Under the allocation described in the report, the fee structure separates the underwriting syndicate into lead banks, major participating banks, and the remaining participating institutions.
If the figures are finalized as reported, the SpaceX IPO would rank among the most closely watched large financing projects on Wall Street in recent years. For the investment banks involved, an underwriting fee pool of about $500 million would represent substantial business revenue. For SpaceX, the transaction is also described as an important milestone for the commercial space sector.