Firmus Technologies’ float is set to deliver investment bankers a $215 million payday, making it the most lucrative ASX listing for advisers ever.
The company, which rents out its specialised processing chips to large technology companies, is expected to begin trading on October 23, with Morgan Stanley, Bank of America, JPMorgan and Morgans Financial appointed as joint lead managers for the $7.2 billion raising.
Firmus will pay those banks an underwriting fee equivalent of 2.2 per cent of the raise, along with a 0.55 per cent management fee, according to an agreement between the company and its advisers.
The company can also pay another 0.25 per cent incentive fee at its discretion, taking the potential pool to 3 per cent, or about $US150 million ($215 million). That is equivalent to three-quarters of the total corporate finance revenue that Barrenjoey Capital Partners generated last year.
The four joint lead managers will share the underwriting and management fees in proportions that are set out in their agreement with Firmus. Highbury Partnership is also a financial adviser on the listing.
The scale of the payday is apparent when compared to other big floats over the past three decades: Myer’s $US2 billion listing in 2009 generated an estimated $US60 million in fees, while the $US4.4 billion float of QR National, now Aurizon, yielded about $US59.2 million, according to data compiled by the London Stock Exchange Group.