how do ipo underwriters get paid 
the issuing company selects an underwriting bank that works for its interests other institutions may be required depending on the size and nature of the ipo the original underwriter becomes the lead and forms a syndicate underwriters are generally guaranteed a fee for their services the lead receives a portion of the gross spread which is fixed as a percentage of the ipo proceeds the remaining portion is split between the remaining underwriters the company may also agree to cover other costs including out of pocket expenses incurred by the underwriter s during the process 