- The investment banks who helped carry data-storage unicorn Snowflake to the open market, and took part in the biggest software IPO in history, are celebrating with a flurry of fees, according to data reviewed by Business Insider from regulatory filings and Dealogic.
- Collectively, the 10 banks pocketed a cool $105 million in fees.
- According to estimates from Dealogic, Goldman Sachs ($34 million) earned the most in fees from the IPO, followed by Morgan Stanley ($21 million).
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On a good day, bankers say they have the power to make it rain. But this week, they made it snow.
The investment banks who helped carry data-storage unicorn Snowflake to the open market on Wednesday — thereby taking part in the biggest software IPO in history — are closing out the week by celebrating with a flurry of fees, according to data reviewed by Business Insider from regulatory filings and Dealogic.
Collectively, the 10 banks that served as underwriters for the IPO pocketed a cool $105 million in fees.
Goldman Sachs — the firm that took home the lion's share of the fees — raked in $34 million from the IPO, according to researchers at Dealogic who shared their estimates with Business Insider.
Read more: 3 Snowflake executives are now officially billionaires after the Buffett-backed data storage company's record-breaking IPO
Goldman isn't alone in celebrating a massive windfall from the record-breaking IPO, which is also the biggest of this year.
The company's chief executive, Frank Slootman; former CEO Bob Muglia; and cofounder Benoit Dageville are newly minted billionaires as a result of the IPO, Business Insider has previously reported.
Snowflake's debut sent such shockwaves through the market — it opened at $245 per share, which was more than double its IPO price of $120 — that shares were stopped by a temporary trading halt for volatility, and unleashed a debate about the IPO pricing process.
Read more: Critics are bashing the IPO process after Snowflake's massive first-day stock pop. Here's what's behind the huge pricing disconnect.
How much did the investment banks involved in the deal walk away with?
To determine how much the underwriters took home on the deal, Dealogic utilized the publicly disclosed underwriting discount that the banks received — a discount of $3.78 per share — in relation to the IPO share price ($120), to determine a discount rate of 3.15%.
The estimates were based off of publicly disclosed figures around the total fees taken home by all of the underwriters involved in the IPO: $105,840,000, according to an SEC filing.
Taking each underwriter's allotment of shares into account, Dealogic estimated that the banks involved in the IPO earned the following in fees:
- Goldman Sachs: $34 million
- Morgan Stanley: $21 million
- Citigroup: $8 million
- JPMorgan: $8 million
- Allen & Co: $8 million
- Credit Suisse: $4 million
- Barclays: $3 million
- Deutsche Bank: $3 million
- Mizuho Americas: $3 million
- Truist: $3 million
These firms were all contacted by Business Insider with a request for comment on this story, and either declined to comment or did not respond.
Get the latest Goldman Sachs stock price here.
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