Goldman Sachs to Earn 0.5% Fee on SK Hynix’s Potential Record US Offering
GS•SK Hynix is weighing a 0.5% underwriting fee for banks on its planned US share sale, which could rank among the largest offerings ever. Goldman Sachs, as a lead underwriter, would earn a 0.5% commission on the transaction if finalized.
1. Underwriting Fee Proposal
SK Hynix has proposed paying a 0.5% fee to banks underwriting its planned US listing, marking a significant drop from the customary 1%-2% range. The fee structure is under review as the South Korean chipmaker prepares what could become one of the largest share sales globally.
2. Goldman Sachs’ Involvement
Goldman Sachs is positioned as one of the lead underwriters for the offering and would receive the 0.5% commission on the total proceeds. This role underscores Goldman’s continued participation in high-profile equity transactions despite compressed fees.
3. Commission and Market Context
Underwriting fees for blockbuster equity offerings typically range between 1% and 2% of deal value. A 0.5% rate halves Goldman’s per-dollar commission but could still translate into substantial revenue if the sale reaches multibillion-dollar scale.
