Wall Street Banks has been paying meager payments from Coreweave IPO

Wall Street Banks waited a long time for a billion dollar of public subscription from an American technology company. They do not earn a lot of money from the person they got.

Discount subscription and commissions paid by the artificial intelligence infrastructure provider CoruvThe Nasdaq Stock Exchange was struck on Friday, only 2.8 % of the total revenue, according to Submit the two With the Securities and Stock Exchange Committee. This means that of $ 1.5 billion collected in the offer, $ 42 million went to insurance companies.

This is on the historically low side. since Facebook Obtaining public subscription in 2012There were 25 project -backed project offers for American companies related to technology that raised at least one billion dollars, with average subscription fee by 4 %, according to data from FactSet analyzed by CNBC. Facebook, to raise $ 16 billion, I pushed The lowest percentage in 1.1 %.

Morgan StanleyWho led the public subscription on Facebook, it was the second place on Coreweave, followed Jpmorgan Chase and Goldman Sachs. The three banks are usually the leaders when it comes to the formation of technology. They were dependent on the market revival under President Donald Trump After a calm, it dates back to the end of 2021, when high inflation rates and high interest rates rise on new offers.

But Coreave’s initial trading sessions do not provide great confidence in the apostasy. After reducing its price to $ 40 from a range ranging between $ 47 and $ 55, Coreave failed to get any gains on Friday and 7 % decreased Monday to $ 37.20.

The decreases in the broader market have had a weight on Coreave, but investors also have specific concerns about the company, including its dependence on Microsoft As a customer, the level of huge debts and the sustainability of a business model based on resale Nafidia technology.

Coreave is the first among companies supported by projects that raised one billion dollars or more since then FreshWorks In September 2021. FreshWorks carried the subscription fees by 5.3 %, while UIPATHWhich hit the market a few months ago, paying 5 %. in April From that year, Applovin It carried fees of 2.6 %, the last time the billion dollars offered a fee less than Coreove’s.

Among the most modern subscriptions – all of which collected less than one billion dollars – the fees were much higher. to Instacart and Clavio In 2023 and I respondedand ASTERA Labsand address and servicitan Last year, all payments were at least 5 %.

As a leadership in the Coreweave deal, Morgan Stanley got the highest percentage of customers to customers by 27 %. JPMorgan received 25 %, Goldman Sachs got 15 %.

This percentage usually corresponds to the amount of fees that each bank receives, despite a slightly higher amount to the main bank for management fees.

David Golden, a partner at Revolution Ventures, who previously led to banking technology investment services in Jpmorgan“There is a small black box” involved in the subscription compensation, “it was not disclosed in the release bulletin. Based on his experience with public subscriptions and historical standards, Golden estimated that Morgan Stanley has received at least $ 13 million for his work, as it was slightly more than 30 % of the total payment, while the number of Goldman Sachs will be just higher than 6 million dollars.

Representatives of Morgan Stanley and Goldman Sachs refused to comment. A JPMorgan spokesman immediately did not respond to a request for comment.

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