SEC Expands Nonpublic Draft Registration from EGCs to All Companies

Chris Gaetano
Published Date:
Jun 30, 2017

The Securities and Exchange Commission announced that the ability to submit draft registration statements relating to initial public offerings for review on a non-public basis, which had previously been restricted only to Emerging Growth Companies, has now been expanded to all companies. A nonpublic review after the IPO, according to the SEC, reduces the potential for lengthy exposure to market fluctuations that can adversely affect the offering process and harm existing public shareholders. Companies will still need to have a public filing period prior to the launch of marketing, however, which the SEC says will provide an opportunity for the public to evaluate those offerings. 

"By expanding a popular JOBS Act benefit to all companies, we hope that the next American success story will look to our public markets when they need access to affordable capital," said Chairman Jay Clayton. "We are striving for efficiency in our processes to encourage more companies to consider going public, which can result in more choices for investors, job creation, and a stronger U.S. economy."

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