Photo by Yana Paskova (Bloomberg)
Photo by Yana Paskova (Bloomberg)

SEC Staff Moves to Ease IPO Registration Process

By Phyllis Diamond, Bloomberg BNA

The Division of Corporation Finance will now permit all companies to submit draft registration statements for initial public offerings for review on a non-public basis, the Securities and Exchange Commission said June 29.

The new process, effective July 10, will be available for IPOs as well as most offerings made within a year of when a company enters the public reporting system, the agency said in a release.

The move will make it easier “for more companies to enter and participate in our public company disclosure-based system,”
division director William Hinman said.

Earlier in June, SEC Chairman Jay Clayton said his agency was considering how best to enhance the “attractiveness” of public markets.

The decrease in IPOs and publicly traded companies is of “great concern to me,” he said at an advisory committee meeting.

In the release, the agency said permitting all companies to submit registration statements for non-public review will give them more flexibility to plan their offering

“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,” Clayton said.

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