SEC Staff Facilitates Capital Formation for Companies Planning Public Offerings

The Securities and Exchange Commission today announced that its Division of Corporation Finance is further facilitating capital formation by enhancing the accommodations available to companies for nonpublic review of draft registration statements. In 2012, the JOBS Act permitted certain companies to confidentially submit for staff review a draft registration statement for an initial public offering. In 2017, the staff expanded these accommodations to all companies conducting certain securities offerings, including initial public offerings and follow-on offerings within one year of their initial public offering. With today’s announcement, the accommodations for companies submitting draft registration statements for nonpublic review will be further enhanced. “Over the years, staff have observed companies seeking to raise capital are taking advantage of the nonpublic review process when available.