Middle Market IPO Cost Act

Bill: 119-hr-3395
Sponsor: full_name: Rep. Himes, James A. [D-CT-4]
Introduced: 2025-05-14
Policy area: Finance and Financial Sector
Subjects: Accounting and auditing

Congressional oversight

Financial services and investments

Government studies and investigations

Securities

Small business
Latest action: action_date: 2025-07-22
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2025-05-14
action_desc: Introduced in House
text: <p><strong>Middle Market IPO Cost Act </strong></p><p>This bill requires the Government Accountability Office to study and report on the costs encountered by small- and medium-sized companies when undertaking initial public offerings.</p>

tv_txt: IIB 119th CONGRESS 1st Session H. R. 3395 IN THE SENATE OF THE UNITED STATES July 22, 2025 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT 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.

1. Short title This Act may be cited as the Middle Market IPO Cost Act . 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 ( IPOs ). In carrying out such study, the Comptroller General shall— (1) consider the direct and indirect costs of an IPO, including— (A) fees of accountants, underwriters, and any other outside advisors with respect to the IPO; (B) compliance with Federal and State securities laws at the time of the IPO; and (C) such other IPO-related costs as the Comptroller General may consider; (2) compare and analyze the costs of an IPO with the costs of obtaining alternative sources of financing and of liquidity; (3) consider the impact of such costs on capital formation; (4) analyze the impact of these costs on the availability of public securities of small- and medium-sized companies to retail investors; and (5) analyze trends in IPOs over a time period the Comptroller General determines is appropriate to analyze IPO pricing practices, considering— (A) the number of IPOs; (B) how costs for IPOs have evolved over time for underwriters, investment advisory firms, and other professions for services in connection with an IPO; (C) the number of brokers and dealers active in underwriting IPOs; (D) 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; (E) changes in the costs and availability of investment research for small- and medium-sized companies; and (F) 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.

Passed the House of Representatives July 21, 2025. Kevin F. McCumber, Clerk.

tv_txt: IB 119th CONGRESS 1st Session H. R. 3395 IN THE HOUSE OF REPRESENTATIVES AN ACT 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.

1. Short title This Act may be cited as the Middle Market IPO Cost Act . 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 ( IPOs ). In carrying out such study, the Comptroller General shall— (1) consider the direct and indirect costs of an IPO, including— (A) fees of accountants, underwriters, and any other outside advisors with respect to the IPO; (B) compliance with Federal and State securities laws at the time of the IPO; and (C) such other IPO-related costs as the Comptroller General may consider; (2) compare and analyze the costs of an IPO with the costs of obtaining alternative sources of financing and of liquidity; (3) consider the impact of such costs on capital formation; (4) analyze the impact of these costs on the availability of public securities of small- and medium-sized companies to retail investors; and (5) analyze trends in IPOs over a time period the Comptroller General determines is appropriate to analyze IPO pricing practices, considering— (A) the number of IPOs; (B) how costs for IPOs have evolved over time for underwriters, investment advisory firms, and other professions for services in connection with an IPO; (C) the number of brokers and dealers active in underwriting IPOs; (D) 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; (E) changes in the costs and availability of investment research for small- and medium-sized companies; and (F) 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.

Passed the House of Representatives July 21, 2025. Kevin F. McCumber, Clerk.

tv_txt: IB Union Calendar No. 98 119th CONGRESS 1st Session H. R. 3395 [Report No. 119–128] IN THE HOUSE OF REPRESENTATIVES May 14, 2025 Mr. Himes introduced the following bill; which was referred to the Committee on Financial Services June 3, 2025 Additional sponsors: Mr. Sessions and Mr. Lawler June 3, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on May 14, 2025 A BILL 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.

1. Short title This Act may be cited as the Middle Market IPO Cost Act . 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 ( IPOs ). In carrying out such study, the Comptroller General shall— (1) consider the direct and indirect costs of an IPO, including— (A) fees of accountants, underwriters, and any other outside advisors with respect to the IPO; (B) compliance with Federal and State securities laws at the time of the IPO; and (C) such other IPO-related costs as the Comptroller General may consider; (2) compare and analyze the costs of an IPO with the costs of obtaining alternative sources of financing and of liquidity; (3) consider the impact of such costs on capital formation; (4) analyze the impact of these costs on the availability of public securities of small- and medium-sized companies to retail investors; and (5) analyze trends in IPOs over a time period the Comptroller General determines is appropriate to analyze IPO pricing practices, considering— (A) the number of IPOs; (B) how costs for IPOs have evolved over time for underwriters, investment advisory firms, and other professions for services in connection with an IPO; (C) the number of brokers and dealers active in underwriting IPOs; (D) 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; (E) changes in the costs and availability of investment research for small- and medium-sized companies; and (F) 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.

June 3, 2025 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 119th CONGRESS 1st Session H. R. 3395 IN THE HOUSE OF REPRESENTATIVES May 14, 2025 Mr. Himes introduced the following bill; which was referred to the Committee on Financial Services A BILL 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.

1. Short title This Act may be cited as the Middle Market IPO Cost Act . 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 ( IPOs ). In carrying out such study, the Comptroller General shall— (1) consider the direct and indirect costs of an IPO, including— (A) fees of accountants, underwriters, and any other outside advisors with respect to the IPO; (B) compliance with Federal and State securities laws at the time of the IPO; and (C) such other IPO-related costs as the Comptroller General may consider; (2) compare and analyze the costs of an IPO with the costs of obtaining alternative sources of financing and of liquidity; (3) consider the impact of such costs on capital formation; (4) analyze the impact of these costs on the availability of public securities of small- and medium-sized companies to retail investors; and (5) analyze trends in IPOs over a time period the Comptroller General determines is appropriate to analyze IPO pricing practices, considering— (A) the number of IPOs; (B) how costs for IPOs have evolved over time for underwriters, investment advisory firms, and other professions for services in connection with an IPO; (C) the number of brokers and dealers active in underwriting IPOs; (D) 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; (E) changes in the costs and availability of investment research for small- and medium-sized companies; and (F) 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 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.