Arizona senior Senator Kyrsten Sinema and Republican Senator Cynthia Lummis (Wyo.) introduced the bipartisan Middle Market IPO Underwriting Cost Act—legislation boosting small and medium-sized Arizona businesses by helping reduce the costs incurred when they conduct an initial public offering (IPO) and “go public,” trading a company’s stock on a stock exchange.
“Our commonsense, bipartisan bill boosts Arizona businesses by making it easier to grow and create jobs. 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,” said Senator Sinema.
“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,” Senator 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 Senator Sinema on this important legislation.”
Sinema’s Middle Market IPO Underwriting Cost Act requires the Securities and Exchange Commission to issue a report on the direct and indirect costs of a traditional IPO and compare those costs with the cost of obtaining alternate forms of financing. The SEC would also have to report on recent trends in IPO offerings, and the costs incurred.