Middle Market IPO Cost Act
Sponsored By: Representative Himes
Passed House
Summary
Directs a federal study of IPO costs for small- and medium-sized companies. The Comptroller General would work with the SEC and FINRA to measure direct and indirect costs, compare IPO costs to alternative financing, analyze effects on capital formation and retail investor access, and deliver findings and recommendations to Congress within 360 days.
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- Small- and medium-sized companies: The study would detail direct and indirect IPO expenses, including fees for accountants, underwriters, outside advisors, compliance with Federal and State securities laws, and litigation-related costs.
- Retail investors: It would analyze how IPO costs affect the availability of public securities to retail investors.
- Market participants: The review would compare IPO costs to other financing options and track trends such as the number of IPOs, evolution of underwriting and advisory fees, the number of brokers and dealers active in underwriting, and changes in investment research availability.
- Policymakers and regulators: Congress would receive a Comptroller General report with findings and any administrative or legislative recommendations after the study period.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Study of IPO costs for smaller companies
If enacted, the Government Accountability Office would study what it costs small and mid-sized companies to go public. GAO would consult the SEC and FINRA and review both direct and indirect IPO costs, like fees and compliance with federal and state laws. It would compare IPO costs to other ways to raise money or get liquidity, and consider effects on capital formation and access for retail investors. The study would also track trends, such as the number of IPOs, underwriting services and costs, research availability, and litigation impacts for public companies. GAO would report findings and any recommendations to Congress within 360 days after enactment.
Sponsors & CoSponsors
Sponsor
Himes
CT • D
Cosponsors
Sessions
TX • R
Sponsored 5/19/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 6/3/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov