SpaceX Wants Fee Cut From Bankers Chasing $500 Million Windfall

Summary

Bloomberg's Sri Natarajan discusses SpaceX negotiating razor-thin IPO fees below 0.75% for its $75 billion raise, still generating about $500 million for banks. He also notes Google's surprise $80 billion equity raise, potentially the largest ever.

• SpaceX is negotiating IPO fees below 0.75%, well below the typical 4-7% range.
• Even at low fees, the $75 billion raise would generate roughly $500 million in bank fees.
• Lead banks Goldman Sachs and Morgan Stanley are expected to take the largest shares.
• 23 banks are involved, each targeting different investor groups (retail, institutional, overseas).
• Google's surprise $80 billion equity raise may overshadow SpaceX as the largest ever.
• SpaceX IPO pricing is expected next Thursday, with trading the following day.