First, it is important to note that the distributed documents are generally of very high production quality, which is expensive in itself. It might be surprising to see that printing is so expensive and amounts to approximately 0.5 million for the typical IPO.Legal costs are generally the second-largest cost block, followed by accounting fees.In the case of a 250-500m revenue company, the typical fee is around 17.4 million or almost 80% of the overall costs (=17.4/22.1). These fees generally amount to 4% to 7% of the gross proceeds of the IPO. By far the largest cost block are the investment bankers' underwriting fees. ![]() For example, for an average firm with revenues of $250 to 500 million, the direct costs of going public are around $22 million! It is apparent from the graph that going public is indeed expensive. Underwriting costs: These are the fees for the investment banks that underwrite the securities and help bring them to the market.Other costs: Mostly exchange registration costs and market listing fees.Printing costs: These are costs for document management, SEC filings, and the distribution of the IPO prospectus.Legal costs: Primarily fees for securities counsel for drafting the registration statement or for legal due diligence.Accounting costs: Primarily fees for external auditors as well as financial reporting advisors.The IPO costs are split into 5 groups, namely: The table is from a recent survey that was conducted by PWC and covers 315 firms that went public on the NASDAQ or the NYSE between 20. The following table provides an overview of the average direct costs of going public, grouped by size of the issuing company. First, it is important to point out that the process of going public is very expensive and usually takes one to two years.
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