Banks lobby Aramco for incentive fee after slim IPO pickings -sources

Financial Post | Jan 14, 2020 at 7:02 AM
  • Global banks who worked on Saudi Aramco’s record initial public offering are pushing for an additional “incentive fee,” three sources familiar with the matter said, as they try to boost relatively low earnings from the deal.
  • The payment of incentive fees – used to keep the base fees on a listing low and push banks to work harder – is increasingly common for IPOs in Europe and the U.S. but rare in the Gulf.
  • The oil giant paid just 25 basis points as a base fee on its deal size, earning banks just over $60 million.