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

<DOC>





                                                 Union Calendar No. 685
115th CONGRESS
  2d Session
                                H. R. 6324

                          [Report No. 115-887]

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2018

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

                             August 3, 2018

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on July 
                               10, 2018]


_______________________________________________________________________

                                 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 costs associated with small- and medium-sized companies to 
undertake initial public offerings (``IPOs''). 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.
    (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.
            Amend the title so as to read: ``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.''.
                                                 Union Calendar No. 685

115th CONGRESS

  2d Session

                               H. R. 6324

                          [Report No. 115-887]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             August 3, 2018

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed