• Boeing, the struggling plane maker, sold more than $20 billion worth of stock this week.
• PJT Partners, Goldman Sachs and RBC Capital Markets were among the banks that worked with Boeing.
• This sale is expected to increase bankers’ profits as end-of-year compensation approaches.

Wall Street bankers responsible for helping companies raise money through stock sales just got an early Christmas present.

Boeing announced its plans on Monday sell $19 million worth of shares and depository actions to avoid credit downgrade during a costly worker strike.

The sale has ended raising nearly $21 billion, This is one of the largest transactions in history for U.S. capital markets bankers. Several banks participated in the offer. Among them were joint lead bookrunners Goldman Sachs, Bank of America, Citigroup and JPMorgan; with the help of companies such as RBC Capital Markets, Morgan Stanley, etc. PJT Partners acted as financial advisor to Boeing, the company said.

The sale, which exceeds the $16.5 billion raised by Facebook in its record 2012 IPO, comes during a difficult time for Wall Street in general and is expected to increase year-end bonuses for ECM bankers, according to compensation expert Alan Johnson.

Johnson, who founded Johnson Associates, a consulting group that works on behalf of financial services companies, told Business Insider that he recently predicted that bonuses for equity and capital markets professionals borrowing would amount to 20%. % to 25% this year. With Boeing’s capital increase, it now expects ECM bonuses to increase by 30%, he said.

The contribution of Boeing’s stock sale to a bank’s bonus pool will of course vary depending on the amount of stock each bank sells on behalf of the aircraft maker, Johnson said.

Spokespeople for some of these companies did not respond or comment on the potential impact on compensation following their work on Boeing’s raise.

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The ultimate scale of Boeing’s capital raise places it among the largest capital raises ever, according to global capital raise data provided by LSEG. It was ranked the third largest common stock offering in the world, according to S&P Capital IQ data reported by Semafor. The largest was Brazilian oil company Petrobras, which raised nearly $41 billion in September 2010; followed by the British bank Lloyds, which raised more than $22 billion in 2009.

In terms of volume, that far exceeds revenue from other IPOs and common stock raises so far this year, including the $2.7 billion Thoma Bravo raised by selling about half of its shares on Nasdaq, according to LSEG data. The biggest IPO of the year, real estate investor trust Lineage, raised only $4.4 billion, The LSEG data shows this.

For Boeing, the newly raised money comes as the company tries to overcome headwinds.

The company has struggled this year, reporting a loss of more than $6 billion in its earnings disclosure this month. The company has faced a series of safety issues related to problems with doors and mechanical components that have spooked investors. The country is also in difficulty as a strike of more than 30,000 workers, which began in September, continues. Its stock fell from a peak of more than $251 per share in early 2024 to around $155 at the end of October, a reduction of about 38%. All these forces created a need for additional capital at the aircraft manufacturer, hence its sale.

Generally speaking, Wall Street traders are they are going to have a better year than the one they had since the investment bank’s early days in 2021, when liquidity was cheap and the deal market was on fire. Mergers are also coming back, with several transactions amounting to tens of billionslike candy maker Mars’ acquisition of snack producer Kellanova for $36 billion. Signs of a thaw in transactions are there, and bankers are hoping that 2025 will once again mark the return of spring.

Year-end compensation is expected to be “up across Wall Street,” said Johnson, whose company will release its highly anticipated annual incentive compensation report in the coming weeks.

“This year it’s a little bit better. To some extent, we’re hoping it’ll be a lot better next year,” Johnson said, adding: “It’s one of those years where wages are going to go up pretty much everywhere . Some will increase, an increase of 5%, even 10%.

But, based on Johnson’s predictions, it appears that those involved in Boeing’s capital raise could find themselves at the top on bonus day.