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Senate Bill 3980
117th Congress(2021-2022)
Middle Market IPO Underwriting Cost Act
Introduced
Introduced
Introduced in Senate on Mar 31, 2022
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Introduced in Senate 
Mar 31, 2022
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Introduced in Senate(Mar 31, 2022)
Mar 31, 2022
No Linkage Found
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Multiple bills can contain the same text. This could be an identical bill in the opposite chamber or a smaller bill with a section embedded in a larger bill.
Bill Sponsor regularly scans bill texts to find sections that are contained in other bill texts. When a matching section is found, the bills containing that section can be viewed by clicking "View Bills" within the bill text section.
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S. 3980 (Introduced-in-Senate)


117th CONGRESS
2d Session
S. 3980


To require the Securities and Exchange Commission to carry out a study of the costs associated with small- and medium-sized companies to undertake initial public offerings.

IN THE SENATE OF THE UNITED STATES

March 31, 2022

Ms. Lummis (for herself, Ms. Sinema, Mr. Warner, and Mr. Hagerty) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To require the Securities and Exchange Commission 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 Underwriting Cost Act”.

SEC. 2. Study on IPO fees.

(a) Definitions.—In this section:

(1) IPOS.—The term “IPOs” means initial public offerings.

(2) SMALL- AND MEDIUM-SIZED COMPANIES.—The term “small- and medium-sized companies” means issuers with an initial public float determination of less than $700,000,000.

(b) Study.—The Securities and Exchange 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 IPOs and Tier 2 offerings, as defined in section 230.251 of title 17, Code of Federal Regulations. In carrying out such study, the Commission shall—

(1) consider the direct and indirect costs of an IPO, including—

(A) fees, such as gross spreads paid to underwriters, IPO advisors, and other professionals;

(B) compliance with Federal and State securities laws at the time of the IPO; and

(C) such other IPO-related costs as the Commission determines appropriate;

(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 Commission determines is appropriate to analyze IPO pricing practices, considering—

(A) the number of IPOs;

(B) how costs for IPOs have evolved over time, including fees paid to 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 underwriting costs;

(E) changes in the costs and availability of investment research for small- and medium-sized companies; and

(F) any other consideration the Commission considers necessary and appropriate.

(c) Report.—Not later than the end of the 360-day period beginning on the date of the enactment of this Act, the Commission shall issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (b) and any administrative or legislative recommendations the Commission may have.