By Kylie MacLellan
LONDON, July 30 (Reuters) - The investment banks working onBarclays' multi-billion pound share sale could split atotal fee pot of close to 100 million pounds ($153.49 million).
Barclays said on Tuesday it planned to raise 5.8 billionpounds from its shareholders to satisfy Britain's financialregulator's demands for the 320-year-old bank to strengthen itscapital reserves.
Buoyant stock markets have helped boost the volume of equityfundraising globally this year, with the amount raised up 36percent year-on-year in the first six months of 2013.
Total global equity capital markets (ECM) fees have alsorisen, with banks earning $9.6 billion during the first half ofthe year, a 26 percent increase on the same period in 2012.
Barclays' rights issue is being underwritten by Bank ofAmerica Merrill Lynch, Citi, Credit Suisse and Deutsche Bank, who will reap fees of asmuch as 1.7 percent of the gross proceeds of around 5.95 billionpounds, according to the underwriting agreement.
That is below the average 2.79 percent paid on rights issuesglobally so far this year, according to data from ThomsonReuters and Freeman Consulting.
If any extra underwriters or sub-underwriters are added tothe deal they will also be paid from this total fee pot of 101.1million pounds, eating into the commission paid to the top fourbanks and reducing the risk each takes on.
Also, Barclays will itself receive around 5.95 millionpounds for its role as global co-ordinator on the sale.
If the new shares are not admitted to the stock market byOct. 3, the underwriters may be in line for extra fees.
The share sale would not impact investment banking leaguetables until it is completed but if it were included today, withcredit based on no further underwriters being added, DeutscheBank would overtake Goldman Sachs to claim the top spotin the Thomson Reuters ECM (Equity Capital Markets) tables forEurope, Middle East and Africa.
Barclays (BARC)
