On January 13, the SEC adopted the changes to form S-1 processes… buried deep within the provisions attached to the Fixing America’s Surface Transportation Act (FAST!), the highway-funding bill approved in December.
The new rule will allow emerging growth companies (EGC) and smaller reporting companies to disclose less information in some EDGAR filings, reducing costs during the IPO process. One projection suggests the savings could be as high as 25% from pre-to-post IPO registration effectiveness and into year-one as an issuer.
From a “financial print” and S-1 drafting POV (the stuff we do here at Vintage), the costs are not dramatically affected. The SEC will require the same back-and-forth registration review process we’ve illustrated in this downloadable whitepaper.
The new cost structure will affect auditing processes and those subsequent fees – which could trickle down some cost reduction into the “physical” registration filing process simply by having fewer words and tables to typeset.
The SEC is allowing public comments for the next 30 days.