Cost & Expense Considerations:
What It Really Takes to Go Public

PublicFinancial.com IPO Knowledge Hub Series


How much does it really cost to take your company public? What expenses should you expect, and where are the opportunities to save?


This guide breaks down IPO and direct listing costs — from planning to listing and beyond.


Key Founder Questions: Cost & Expense Considerations

1️⃣ How much will it cost to go public overall?

  • Traditional IPO: $1M–$2M+ in direct costs, plus 6%–78% in underwriting fees based on capital raised.
  • Direct Listing: $300K–$1M, with no underwriting fees but many of the same advisory costs.

The final figure depends on your offering size, complexity, market, and team.

2️⃣ How do the costs of a direct listing compare to an IPO?

  • You avoid underwriting fees, often the single largest expense.
  • Still requires legal, accounting, regulatory, and advisory services.
  • Direct listings can save 30–50% in upfront fees — but are not free or simple.

3️⃣ What are the major one-time costs?

Legal & regulatory counsel               $300K – $1M+
Accounting & audit fees                    $500K – $2M+
SEC & stock exchange fees               $125K – $500K+
Financial printing & filing                  $50K – $250K
Investor relations support                $100K – $500K
D&O insurance                                    $250K – $1M+
Underwriting fees (IPO only)           6%–8% of gross raise

4️⃣ Will our ongoing costs increase after going public?

Yes. Ongoing annual costs can include:

  • Increased audit and legal fees.
  • SEC reporting costs (10-Q, 10-K, 8-K filings).
  • Director & Officer (D&O) insurance.
  • Investor relations, media, and PR efforts.

Typical annual increase: $300K–$1M+ for most small to mid-cap companies.

5️⃣ How much of management’s time will the process consume?

  • Expect 25%–50% of the CEO, CFO, and GC’s time over 6–12 months.
  • Time spent preparing financials, meeting investors, and managing filings.

It’s a significant operational distraction without the right external support.

6️⃣ Are there unexpected costs we should anticipate?

  • Amending or restating financials.
  • Additional comment rounds from the SEC.
  • Extended PR or IR efforts if demand is weaker than expected.
  • Delays due to legal, tax, or governance complications.

Build in 10%–20% margin for unplanned advisory work.

7️⃣ Do we need a budget for investor relations and PR?

Yes.

  • IR helps manage your narrative pre- and post-listing.
  • PR firms assist with perception, media, and positioning.

Budget at least $100K during the listing period alone.

8️⃣ What cost-saving opportunities exist?

  • Bundle advisory services (e.g., use law firms or banks with IPO packages).
  • Start readiness early to avoid expensive rush work.
  • Consider fractional CFO or IR services instead of full-time hires.

9️⃣ Where will we still incur significant expenses in a direct listing?

  • Legal and accounting support.
  • S-1 registration and SEC compliance.
  • IR, PR, and advisor coordination.
  • Technology, reporting, and internal systems.

Direct listings skip underwriters but still require substantial infrastructure investment.

🔟 How do companies finance the upfront costs of going public?

  • Many use existing cash reserves.
  • Some raise private rounds specifically to fund IPO preparation.
  • Others secure bridge capital or work with advisors who defer fees until listing.


Final Thought

Going public can be expensive — but avoidable surprises are even more costly.

With early planning and the right advisors, you can manage costs, stay lean, and focus on long-term shareholder value.


Next Step: Get a Tailored IPO Cost Estimate

Every company’s public path is different. Let us help you map out yours. Contact PublicFinancial.com for a personalized cost assessment and planning session.