U.S. Sens. Cynthia Lummis (R-WY), Kyrsten Sinema (D-AZ), Mark Warner (D-VA), and Bill Hagerty (R-TN) recently introduced legislation that seeks to ease Main Street business initial public offering (IPO) efforts by aiding in reducing costs associated with such endeavors.
The Middle Market IPO Underwriting Cost Act (S.3980) requires the Securities and Exchange Commission (SEC) to execute a costs study associated with small- and medium-sized companies undertaking initial public offerings.
“We need to bring our financial sector into the 21st century, and that means looking at new, innovative ways to do things like initial public offerings,” Lummis said. “Big companies figured out years ago that they could reduce costs by changing IPO fee structures. Wyoming is full of small and mid-sized companies, and they should not be penalized simply because of historic fee structures and restrictions on how IPOs are funded. I am honored to work with Senators Hagerty, Sinema, and Warner on this important legislation.”
The bill stipulates that the SEC issues a report regarding the direct and indirect costs of a traditional IPO and compares those costs with the cost of obtaining alternate forms of financing while also addressing IPO offering trends incurred costs.
“Our common sense, bipartisan bill boosts Arizona businesses by making it easier to grow and create jobs,” Sinema said. “By going public, Arizona businesses will be able to give everyday Arizona families the opportunity to invest directly in their businesses and build wealth for the future. We’ll continue working across the aisle to fuel economic opportunities across our state.”