Our colleagues on the IR side of the house issued a new white paper yesterday. If you are involved (or interested) in the IPO process, this paper will shed some light on a the differences between traditional IPOs and confidential IPOs.
Originally posted on Building Shareholder Confidence:
When Twitter announced their confidential IPO last year, many pundits took this as a negative move. “Something is up over there…” Bah. As blogged here, the word “cautious” is a better word to describe the motives of the confidential IPO process.
What is a confidential IPO? The JOBS Act allows firms with less than $1 billion in annual revenue (emerging-growth companies or EGCs) to keep their IPO filings confidential up until just three weeks before they roadshow and market their shares. This is in contrast to the typical S-1 file which is openly filed months before the roadshow giving potential investors, media, peers and competitors a longer time window to consider an investment.
So the questions are… what are investors missing? Is there material information they are not seeing? What is held confidential? What is the SEC doing? Are investors going to…
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