Wall Street firms are expected to pull in hundreds of millions of dollars working on a trio of mega IPOs over the next few months — though that may be a little less than they might have hoped, Axios' Pete Gannon writes.
Zoom in: Elon Musk's SpaceX is negotiating to pay base fees under 0.75% to banks working on the deal, Bloomberg reported, citing people with knowledge of the matter.
While that's far below the typical 4%–7% fees usually commanded for typical IPOs, the coming deals for SpaceX, Anthropic and OpenAI are anything but typical.
Between the lines: Big offerings typically pay smaller fees, Bloomberg notes, but 0.75% is smaller than previous "big offerings."
And whatever fees SpaceX negotiates could set a precedent for Anthropic and OpenAI deals down the line.
Context: SpaceX reportedly wants to raise up to $80 billion, targeting a valuation of $1.8 trillion. Anthropic and OpenAI could look to raise similar amounts.
Stunning stat: The all-time record for total IPO proceeds in a year is $142.4 billion, set in 2021, Axios' Dan Primack notes.
