where companies show underwriter fee when companies go public?



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when the companies go public where do we show under writer fee in financial statements? for example if the GS was a under writer for Face book and charged some percentage of IPO where face book shows this fee. Same question is when company sells debt to financial market to raise capital -where does it show the bank fee?

6 Answer(s)


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These fees are typically present in the offering document. All IPOs, Debt offerings etc have an offering document that is available online through the SEC website. In that under the category "Uses of Proceeds" you will find these fees. Typically IPO fees are in the range of 5%

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Binny, does this mean companies do'nt show this fee in balance sheet, or income statement, or cash flow statements?

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Hi Yasar, Even though the balance sheet and income statement have these charges baked in....they would rarely break it up explicitly under a specific heading.

Many companies include their bond underwriting fees under "Deferred Charges" to capitalize it and then amortize this charge over the lifetime of the bond.

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To look up IPO fees you need search for the company using its ticker here - http://www.sec.gov/edgar/searchedgar/companysearch.html

Then look for its "S1" filings.

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Click this link to read about the Ultimate Guide to Financial Modelling

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I liked that you have written a post on this topic. I think these companies charge fees because they provide you a platform where you can do online marketing and now you can research paper help to manage the report. You have to pay these fees if you want to work under their supervision.

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