SpaceX negotiating underwriting fees under 0.75% for IPO, Bloomberg News reports

June 2 (Reuters) – Elon Musk’s SpaceX is negotiating with banks underwriting its initial public offering to pay fees of less than 0.75% on the roughly $75 billion it aims to raise this month, Bloomberg News reported on Tuesday.

The banks are still likely to rake in about $500 million from the record-setting listing of the space and AI conglomerate, the report added, citing people familiar with the matter.

Goldman Sachs, Morgan Stanley, BofA Securities, Citigroup and J.P.Morgan are the joint book-running managers for the offering, leading a syndicate of global investment banks underwriting the deal.

The lead banks, Goldman Sachs and Morgan Stanley, are positioned to take in a bigger share of the fee pool than the other 21 brokers involved, according to the report.

The figures represent the base fee being charged to SpaceX and do not factor in other discretionary incentives, the report said.

SpaceX and Morgan Stanley did not immediately respond to a Reuters request for comment. Goldman Sachs declined to comment.

Expected to be the largest stock market debut in history, SpaceX’s listing would bring one of the world’s most valuable private companies into public markets, giving investors direct access to businesses spanning space launch services, satellite broadband and AI.

The company is expected to raise as much as $75 billion at a valuation of about $1.75 trillion, Reuters has reported. SpaceX is expected to list its shares as early as June 12, with a roadshow launch targeted for ​June 4.

General Motors’ IPO in 2010 saw Wall Street banks negotiate a 0.75% underwriting fee with the U.S. government on the common stock sale.

(Reporting by Manya Saini and Arasu Kannagi Basil; Editing by Shinjini Ganguli and Pooja Desai)