An excellent article in yesterday’s NYT DealBook regarding companies taking advantage of the JOBS Act’s “confidential IPO” process. Or as we like to describe this S-1 registration… a cautious IPO.
What I liked most about the piece is the position that the process is becoming the new normal for emerging growth tech companies.
From the article:
It’s not just technology companies. Roughly 70 to 80 percent of all I.P.O.s in the United States that priced last year began as confidential filings, according to the research firm Renaissance Capital.
“It wasn’t really a hard decision,” said Robert Chesnut, the general counsel of Chegg, an education start-up that filed confidentially before it went public last fall. “There were lots of advantages and not much in the way of a downside.”
You can read the full article here.
I also recommend you download our recent whitepaper that compares the workflow of a confidential IPO against a traditional IPO. I think the comparison will surprise you. Click here for the whitepaper.
Our Transactions team frequently works (S-1 registration drafting sessions) with cautious IPOs. I’d tell you more, but then that would NOT be very confidential of me.
Have a great day