UPDATE: Facebook IPO Allotments: Morgan Stanley 38%, JP Morgan 20%, Goldman 15% -Sources
19 May 2012 - 6:45AM
Dow Jones News
NEW YORK (Dow Jones)--Lead underwriter Morgan Stanley (MS)
received about 38% of the shares in Facebook Inc.'s (FB) initial
public offering to distribute to investors, while J.P. Morgan Chase
& Co. (JPM) and Goldman Sachs Group Inc.'s (GS) allotments were
roughly 20% and 15% respectively, according to people familiar with
the situation.
Morgan Stanley was expected to collect the largest chunk of what
could be more than $175 million in fees from the social-network
company's IPO, one of these people said. The Wall Street Journal
reported earlier this month, when the anticipated deal size was
smaller, that the total was an estimated $150 million, citing
people familiar with the situation.
The figure increased because Facebook boosted the size of the
offering by 25%, or 100 million shares, after convincing earlier
investors like Accel Partners, Tiger Global Management LLC and
Goldman Sachs to increase the number of shares they were
selling.
The share-allotment and fee-pool estimates don't reflect an
extra 63.2 million in Facebook shares, the so-called greenshoe, in
which underwriters receive additional stock and can sell it to
investors at the offering price.
Facebook, which priced Thursday at $38, opened Friday around
$42, before falling to as low as $38. The stock rebounded, but fell
back again, closing up 0.6% at $38.23.
Morgan Stanley, which won the coveted lead left spot in the
offering, was joined as a top underwriter on the Facebook deal by
J.P. Morgan Chase & Co. (JPM) and Goldman Sachs, in that
order.
Beyond the top trio, Bank of America Merill Lynch, a unit of
Bank of America Corp. (BAC), and Barclays PLC (BCS) each received
6.5% of the shares, while Allen & Company was allotted 2% and
Citigroup Inc. (C), Credit Suisse Group AG (CS, CSGN.VX) and
Deutsche Bank AG (DB) were all given 2.25% of the distribution, one
of these people said.
Wells Fargo & Co. (WFC) and Royal Bank of Canada (RY)
received 1% of the Facebook shares, this person said.
A Deutsche Bank spokesman declined to comment. J.P. Morgan,
Citigroup, Allen & Company, RBC, and Wells Fargo didn't
immediately respond to requests for comment.
-By Brett Philbin, Dow Jones Newswires; 212-416-2173;
brett.philbin@dowjones.com
--Liz Moyer contributed to this article.
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