The fees for Twitter's offering were higher compared to that of Facebook Inc, said two sources familiar with the negotiations. The sources also said this was because the public offer for the Twitter shares were smaller. Facebook raised USD16 billion last year when it went public and had paid banks 1.1% of the IPO valuation. 

Josef Schuster, founder of IPOX Schuster LLC in Chicago said, "It's a low fee for Twitter to have to pay, and it's a very positive development. It may set a standard that will help companies with future IPOs save costs when they come to market."

The global average IPO fee this year would be at 4.5%, according to a data compiled by Bloomberg. In 2012, US IPO managers had earned around 4.3% in fees while globally they made 3.7%, showed the data.

Spokesman for California-based Twitter Gabriel Stricker declined to comment regarding the report.

According to a 2013 data compiled by Bloomberg, Twitter would be negotiating for a fee that was below the norm for US IPOs that have usually log in at an average of 5.7%. Nevertheless, banks were still willing to take millions of dollars less just to land a high-profile role with a big client, said a Bloomberg report.