H.R. 3395: Middle Market IPO Cost Act

This legislation, known as the Middle Market IPO Cost Act, aims to direct the Comptroller General of the United States to conduct a study on the costs that small and medium-sized companies incur when they decide to go public through initial public offerings (IPOs).

Key Areas of Study

The study should consider several aspects related to the costs of IPOs, including:

• Direct and Indirect Costs: This includes fees paid to accountants, underwriters, and other advisors, as well as costs associated with complying with federal and state securities laws.
• Comparison of Costs: The study will evaluate how the costs of conducting an IPO compare to alternative financing options that small and medium-sized companies might pursue.
• Impact on Capital Formation: Examination of how these costs affect the ability of companies to raise capital.
• Availability of Public Securities: Analysis of how these costs impact the accessibility of public securities of smaller companies for retail investors.
• IPO Trends Over Time: Data collection on the historical trends in IPO activity, including the number of IPOs, evolving costs associated with IPOs, the number of active underwriters and brokers, and various factors influencing IPO costs.

Reporting and Recommendations

The Comptroller General is required to complete the study and submit a report to Congress within 360 days of the bill becoming law. This report will include all findings from the study and may also contain suggestions for administrative or legislative changes based on the identified issues related to the costs of IPOs for small and medium-sized businesses.

Relevant Companies

None found