US Codex
Bill
Notes

H.R. 2812 — what changed

Middle Market IPO Cost Act

From Reported in House to Engrossed in House. 2 sections amended between Reported in House and Engrossed in House.

Section 1 Short title

changed This Act may be cited as the “Middle Market IPO Underwriting Cost Act”.

Sec. 2 Study on IPO fees

(a)
changed Study— The Comptroller General of the United States, in consultation with the Securities and Exchange Commission (“Commission”), Commission, in consultation with 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 Commission Comptroller General shall—
(1)
consider the direct and indirect costs of an IPO, including—
(A)
changed fees, such as gross spreads paid to fees of accountants, underwriters, IPO advisors, and any other professionals;outside advisors with respect to the IPO;
(B)
compliance with Federal and State securities laws at the time of the IPO; and
(C)
changed such other IPO-related costs as the Commission determines appropriate;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)
changed analyze trends in IPOs over a time period the Commission Comptroller General determines is appropriate to analyze IPO pricing practices, considering—
(A)
the number of IPOs;
(B)
changed how costs for IPOs have evolved over time, including fees paid to 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)
changed 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 underwriting IPOs costs;
(E)
changes in the costs and availability of investment research for small- and medium-sized companies; and
(F)
changed any other consideration the Commission considers necessary impacts of litigation and appropriate.its costs on being a public company.
(b)
changed Report— Not later than the end of the 360-day period beginning on the date of the enactment of this Act, the Commission 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 Commission Comptroller General may have.