Facebook Inc., the social-networking website seeking to raise $5billion in an initial public offering, will pay underwriters a 1.1percent fee, two people with knowledge of the company's planssaid.
The fee will be shared among Facebook's underwriters, said thepeople, who asked not to be named because the details are private.Facebook has hired 31 banks to manage the IPO, including MorganStanley as lead underwriter. The lead bank typically earns a biggercut of the total.
At 1.1 percent, the company will be paying its banks aboutone-fifth the typical rate for IPOs. The sale would be the biggestoffering on record for an Internet company and may value Facebookat $75 billion to $100 billion, people familiar with the situationhave said.
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