[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3395 Referred in Senate (RFS)]

<DOC>
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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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 (``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.

            Attest:

                                             KEVIN F. MCCUMBER,

                                                                 Clerk.