Underwriting fee

(redirected from Underwriting Commissions)

Underwriting fee

The portion of the gross underwriting spread that compensates the securities firms that underwrite a public offering for their services.

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.
References in periodicals archive ?
Underwriting commissions paid were USD 32 million (DKK 213 million).
The subordinated notes were sold at par, resulting in net proceeds of nearly USD148.6m, after underwriting commissions and other related expenses.
(NYSE:BAM; TSX:BAM.A; Euronext:BAMA) and certain of its related entities (other than Brookfield Business Partners) (collectively, Brookfield) will, concurrent with the Offering, purchase, directly or indirectly, 6,610,000 redemption-exchange units of Brookfield Business Partners holding limited partnership (REUs) at the Offering Price (net of underwriting commissions), for a total amount of approximately $250 million (the Brookfield Private Placement).
Assuming an offer price of HK$0.60 per offer share, being the mid-point of the indicative offer price range, and deducting the underwriting commissions and other expenses in connection with the Global Offering, the Group expects to raise net proceeds of approximately HK$105.0 million from the Global Offering if the Over-allotment Option is not exercised.
As a result of the exercise of this option, the company has raised total gross proceeds of approximately CDN 29.46m from the offering, before deducting the underwriting commissions and offering expenses.
(OTCQX: AKOM) has announced it has sold a total of 5,124,706 shares common stock at USD 8.50 per share, or gross proceeds of USD 43,560,000 before expenses and underwriting commissions in its ongoing public offering, the company said.
The price per share to be paid by the company is equal to the price paid by the underwriters in the offering, net of underwriting commissions and discounts.
Finally, distribution channels are looking for ways to increase fee income through underwriting commissions. All of these reasons are fueling a robust mergers and acquisitions market.
The net proceeds from the offering are expected to be approximately $20 million, before deducting underwriting commissions and other estimated offering expenses.
Apart from higher revenue from treasury operations, the investment bank also reported significantly higher arranger fees, corporate advisory fees and underwriting commissions in FY2011.
Daiwa attributed the strong performance to an increase in underwriting commissions as Japanese companies carried out public offerings of shares amid a recovery in stock prices during the three-month period.
The net proceeds to the company from the offering after deducting underwriting commissions and discounts and offering expenses were approximately $387.4 million.