Middle Market IPO Cost Act

The Middle Market IPO Cost Act would require the Comptroller General (i.e., the GAO) to conduct a comprehensive study on the costs small- and medium-sized companies face when pursuing an initial public offering (IPO). The study, done in coordination with the Securities and Exchange Commission (SEC) and FINRA, would examine direct and indirect IPO costs (such as fees paid to accountants, underwriters, and other advisors, as well as compliance with securities laws), compare IPO costs with other financing options, assess impacts on capital formation and access for retail investors, and analyze IPO trends and pricing practices over time. The GAO must report its findings and any administrative or legislative recommendations to Congress within 360 days of enactment.