H.R. 3395
119th CONGRESS 1st Session
To require the Comptroller General of the United States to carry out a study of the costs associated with small- and medium-sized companies to undertake initial public offerings.
IN THE HOUSE OF REPRESENTATIVES
Table of contents
SEC. 1. Short title
- This Act may be cited as the Middle Market IPO Cost Act.
SEC. 2. Study on IPO fees
- (a) Study
- The Comptroller General of the United States, in consultation with the Securities and Exchange Commission and the Financial Industry Regulatory Authority, shall carry out a study of the costs associated with small- and medium-sized companies to undertake initial public offerings (). In carrying out such study, the Comptroller General shall—
IPOs- consider the direct and indirect costs of an IPO, including—
- fees of accountants, underwriters, and any other outside advisors with respect to the IPO;
- compliance with Federal and State securities laws at the time of the IPO; and
- such other IPO-related costs as the Comptroller General may consider;
- compare and analyze the costs of an IPO with the costs of obtaining alternative sources of financing and of liquidity;
- consider the impact of such costs on capital formation;
- analyze the impact of these costs on the availability of public securities of small- and medium-sized companies to retail investors; and
- analyze trends in IPOs over a time period the Comptroller General determines is appropriate to analyze IPO pricing practices, considering—
- the number of IPOs;
- how costs for IPOs have evolved over time for underwriters, investment advisory firms, and other professions for services in connection with an IPO;
- the number of brokers and dealers active in underwriting IPOs;
- the different types of services that underwriters and related persons provide before and after a small- or medium-sized company IPO and the factors impacting IPOs costs;
- changes in the costs and availability of investment research for small- and medium-sized companies; and
- the impacts of litigation and its costs on being a public company.
- consider the direct and indirect costs of an IPO, including—
- The Comptroller General of the United States, in consultation with the Securities and Exchange Commission and the Financial Industry Regulatory Authority, shall carry out a study of the costs associated with small- and medium-sized companies to undertake initial public offerings (). In carrying out such study, the Comptroller General shall—
- (b) Report
- Not later than the end of the 360-day period beginning on the date of the enactment of this Act, the Comptroller General of the United States shall issue a report to the Congress containing all findings and determinations made in carrying out the study required under subsection (a) and any administrative or legislative recommendations the Comptroller General may have.