[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6324 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6324

To require the Securities and Exchange Commission to carry out a study 
of the direct and indirect underwriting fees, including gross spreads, 
                for mid-sized initial public offerings.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2018

  Mr. Himes introduced the following bill; which was referred to the 
                    Committee on Financial Services

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                                 A BILL


 
To require the Securities and Exchange Commission to carry out a study 
of the direct and indirect underwriting fees, including gross spreads, 
                for mid-sized 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) Study.--The Securities and Exchange Commission, in consultation 
with the Financial Industry Regulatory Authority, shall carry out a 
study of the direct and indirect underwriting costs, including gross 
spreads and pricing practices, for mid-sized initial public offerings 
(``IPO''). In carrying out such study, the Commission shall--
            (1) compare underwriting fees in foreign countries to those 
        in the United States;
            (2) analyze the relationship between the costs of taking a 
        company public and the underwriting fees, including gross 
        spreads;
            (3) compare the underwriting fees for larger company IPOs 
        compared with mid-sized IPOs;
            (4) look at the changes to underwriting fees, if any, 
        between 1980 and today; and
            (5) consider--
                    (A) the reasons for any disparities identified 
                under paragraphs (1) through (4);
                    (B) whether such fees limit capital formation and 
                whether any such impact is reasonable;
                    (C) how such fees may factor into a company's 
                decision to go public;
                    (D) alternatives to going public through the 
                traditional underwriting process, such as directly 
                listing with a national securities exchange or filing a 
                Form 10; and
                    (E) any other consideration the Commission 
                considers necessary and appropriate.
    (b) 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 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 may have.
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