NEW YORK, May 5 (UPI) -- A banker in New York said bragging rights are among the top assets involved in helping Facebook with its initial public offering.
Facebook executives visited three prominent investment banks in New York in advance of their "road show" that begins Monday, The Wall Street Journal reported Saturday.
The so-called road show is meant to stir up excitement for Facebook's public debut, which could almost be considered redundant.
The company is expected to sell shares between $28 and $35 per share that are predicted to value the company at $96 billion.
The level of interest is high enough that Facebook has negotiated low fees for banks helping with the IPO.
Facebook is paying 1.1 percent of the IPO proceeds, about a third of the average 2.9 percent for such services, the Journal reported.
Instead of lucrative fees, "You get the ability to go to another company and say, 'We were on Facebook,'" one banker told the Journal.
Even beyond the IPO, investment banks may be scratching around for business from Facebook, which recently paid $1 billion for Internet startup Instagram and $550 million for a deal to buy AOL patents from Microsoft -- but conducted both deals by itself, without hiring any bank's mergers and acquisition team to get the deals done.
Banks are prepared to loan Facebook up to $8 billion to cover withholding tax obligations generated by the IPO and may be able to secure personal wealth management deals with some of the millionaires the IPO creates, the Journal said.
Beyond that, banks are not expecting Facebook to be spending a lot of money in New York.
Nonetheless, executives from Facebook visited the headquarters of Goldman Sachs Group, Morgan Stanley and JPMorgan & Chase last week.
Morgan Stanley was somewhat discreet about the visit, giving Facebook executives a route out of the building that enabled them to avoid TV news cameras.
JP Morgan took a different approach, decorating their building with two "thumbs-up" shaped symbols, which are the symbols Facebook members use to signal something they like.