Underwriting Commission

Underwriting Commission

The fee investment bankers charge for underwriting a security issue.

Underwriting Fee

The compensation that an underwriter receives for placing a new issue with investors. It is calculated as a discount from the price of the new issue. For example, an issuer may sell the underwriter a bond at $990 per bond. The underwriter will then place the issue at $1,000, allowing it to make a $10 profit. This profit is the underwriting fee. It is also called a concession.
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Before deducting the underwriting commission and estimated offering expenses, the company expects aggregate gross proceeds of USD12m.
Assuming an Offer Price of HK$0.60 per Share (being the mid-point of the Offer Price range) and after deducting underwriting commission and other related expenses, net proceeds from the Global Offering are estimated to be approximately HK$105.0 million.
These include increasing the minimum size of publicly offered bonds, establishment of a settlement network (JBNet), decreasing the underwriting commission and making them redeemable only at maturity.
Each PD shall be eligible to claim underwriting commission, to the extent of minimum underwriting target (as explained in rule E-3) or the bid amount accepted, whichever is less, in respect of auction of Long Term securities.
said Friday it booked a group net profit of 43.43 billion yen in fiscal 2009, the first profit in two years, as underwriting commission revenues sharply increased on active new share issues by client companies.
According to Mr Raca, the benefit of an open offer for a listed company is that it is able to receive its money at least 21 days earlier than through a rights issue, therefore cutting down on costs by minimising the underwriting commission paid.
With this information, SDC clients can find information such as what has been the largest Indian domestic equity deal in the past five years, who is the leading underwriter of IPOs in the Indian domestic market, or what has been the average underwriting commission earned for IPOs.
(CORV) (CORV), a specialty pharmaceutical company focused on commercializing hospital drugs, today announced the closing of its previously announced underwritten public offering (the 'Offering') of 9,200,000 common shares, which includes the exercise of the underwriter's over-allotment option in full, from treasury at a price to the public of US$1.50 per common share, for aggregate gross proceeds to the Company of US$13,800,000 , before deducting the underwriting commission and estimated Offering expenses payable by the Company.
The underwriting commission will be credited to the current account of the respective PDs at the RBI, Fort, Mumbai on the date of issue of securities.
The offering price per share will not be less than the net asset value per share at the time of the offering, exclusive of any underwriting commission or discounts, subject to certain conditions.
(Nasdaq: CORV) (TSX: CORV), a specialty pharmaceutical company focused on commercializing hospital drugs, today announced the size and pricing of its previously announced underwritten public offering (the 'Offering') of 8,000,000 common shares from treasury at a price to the public of US$1.50 per common share, for aggregate gross proceeds to the Company of US$12,000,000, before deducting the underwriting commission and estimated Offering expenses payable by the Company.
Before underwriting commission and discounts and offering expenses, the company raised aggregate proceeds of USD88.55m.