The U.S. Securities and Exchange Commission (SEC) is intensifying efforts to encourage companies to go public, citing benefits like lower borrowing costs and enhanced access to finance. A report anticipated for release in 2025 indicates that these elements contribute to increased investments, employment, and overall economic growth.
Currently, the average age of companies going public in the U.S. is 11 years, an increase from eight years previously. The costs of compliance for public companies average around $9 billion annually. However, recent SEC proposals to reduce reporting requirements, such as by implementing semiannual instead of quarterly financial reporting, may alleviate some of this financial burden.
Data shows that the average total costs for companies to go public reach approximately $27 million, with larger capital raises nearing $90 million. In 2025, 77 eligible IPOs spent a total of $3 billion to raise $41 billion, resulting in a weighted average cost of 7.2% of the offer amount.
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