PwC released an excellent study last month titled: Preparing for success: 2013 technology IPO SEC comment letter trends.
An interesting area to us (…who execute the S-1 drafting session) is the research regarding the JOBS Act confidential filing for Emerging Growth Companies (EGC) provision. Recently, this confidential filing process came under some fire from pundits when Twitter announced that this was the manner in which they were going to file. “What are they hiding” was the discussion climate. Our view is blogged here – we positioned the Confidential IPO as a “Cautious IPO.”
One point that the PwC study offers to reinforce that “cautious” viewpoint is the average timeframe of an IPO… from initial S-1 (traditional or confidential) to ringing the bell is eight months. That’s eight months of opening your kimono to every one of your competitors. For a technology company (especially web-based), months are like dog years… and a savvy competitor can catch up very quickly.
A confidential IPO filing review with the SEC is the same as a traditional IPO:
What investors need to be mindful of is that the SEC review process for all IPOs is the same. It can become quite a game of ping-pong – and judging by the recent increase in SEC fraud “arrests,” the SEC is diving deeper and deeper into filings to protect investors.
What is the S-1 workflow? Please click here to download our whitepaper on the S-1 filing process. It’s a very tactical explanation.
Have a great day.