I 115th CONGRESS 2d Session H. R. 6324 IN THE HOUSE OF REPRESENTATIVES July 10, 2018 Mr. Himes introduced the following bill; which was referred to the Committee on Financial Services 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.

1. Short title This Act may be cited as the Middle Market IPO Underwriting Cost Act . 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.