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 · May 14, 2025 · Sponsor: Mr. Himes · Committee: Committee on Financial Services

Table of contents

• H.R. 3395
  • SEC. 1. Short title
  • SEC. 2. Study on IPO fees

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.
• (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.