Banks on Wall -Rate received misery payments from Coreweave IPO

Wall -Rate -Bank has long been waiting for IPO for a billion dollars from the US technology company. They don’t make a lot of money from who received.

Discount with underwriting and commissions paid by the artificial intelligence infrastructure provider BuissThe Nasdaq on Friday was only 2.8% of the total revenue, reports Submission on Monday With the Securities and Exchange Commission. This means that from $ 1.5 billion in the proposal, $ 42 million headed for underites.

It’s on the low side historically. Since Facebook”s Red IPO in 2012According to FACSET, CNBC analyzed CNBC. Facebook by raising $ 16 billion, paid The lowest percentage by 1.1%.

Morgan Stanleyheaded by IPO on Facebook, had a cherished left place on Coreweave, then walked Jpmorgan chase and Goldman Sachs. Three banks are usually leaders when it comes to Tech IPO. They were counting on the revival on the market under President Donald Trump After the lull dated by the end of 2021, when inflation increases and interest rates stopped on new proposals.

But the initial Coreweave trade sessions do not provide confidence in the rebound. Following the cost of up to $ 40 from the range from $ 47 to $ 55, on Friday Coreweave was unable to reach profits and fell on 7% Monday to $ 37.20.

Reduction in a broader market is weighed on Coreweave, but investors also have a certain concern by the company, including its dependence on Microsoft As a customer, his hefty level of debt and sustainability business -model built around resale Nvidia’s Technology.

Coreweave-first among companies supported by businesses that have raised $ 1 billion or more since Fresh work In September 2021, Freshworks carries a fee for Anderiting in 5.3%while UipthThey paid 5%a few months earlier. In April this year, Applovin The last time a billion dollar proposal was 2.6%, there was a lower fee than Coreweave.

Among the few recent IPOs, which raised less than $ 1 billion – the fees were much higher. During Instacort and Keyion In 2023 and Reddit. ASTRA Labs. Column and Service Last year’s payments were at least 5%.

As the leading Coreweave agreement, Morgan Stanley received the highest percentage of stock distribution for 27%. JPMorgan received 25%and Goldman Sachs received 15%.

These percentage distributions usually correspond to how much payments each bank receives, though with a slightly larger number of the leading bank for part of the driving fee.

David Gold, a partner in Revolution Ventures, who previously ruled technology banks in JpmorganHe said “there is a small” black box “that is involved in compensation for underwriting, which is not revealed in the avenue. Based on its experience with IPO and historical norm, Golden estimated that Morgan Stanley received at least $ 13 million for its work, which was just over 30% of the total payment, and the Goldman Sachs will be just above $ 6 million.

Representatives of Morgan Stanley and Goldman Sachs refused to comment. JPMorgan’s press secretary did not immediately respond to a comment request.

See: A Crazy Kramer’s Coreweave