typical underwriting fees for ipo
Average underwriting fees in Canada range from 8.12% for IPO raisings up to US$10 million and were 5.53% for issues over US$100 million. Average underwriting fees in the US range from 9.39% for issues up to US$10 million and were 6.26% for issues over US$100 million.The total direct costs, measured as a percentage of proceeds, averaged 14.39% for Canadian firm commitment offerings while 5. they were 10.44% for the US IPOs.nderwriting Cost Literature Chen and Ritter (2000) investigate 1,111 IPOs raising between $20 million and $80 million and identify that underwriting spreads for those IPOs clustered at exactly 7%. The authors argue that this widespread âagreementâ in fees by underwriters suggests pricing collusion.