Jun 30, 2017

SEC to let all companies file confidentially for an IPO

Mark Lennihan / AP

The Securities and Exchange Commission has decided let all companies confidentially submit a draft IPO registration to get feedback from the Agency. This is similar to the so-called confidential IPO filing that "emerging growth companies"—businesses with less than $1 billion in annual revenue—have been allowed to make since the JOBS Act of 2012 was passed into law.

Why: "By expanding a popular JOBS Act benefit to all companies, we hope that the next American success story will look to our public markets when they need access to affordable capital," new SEC chairman Jay Clayton said in a statement. This more or less translates into a plea to get more companies to go public, with the number of public companies now 37% lower than at its 1997 high.

In context: Since the JOBS Act, most IPOs have been from emerging growth companies (EGCs), proof that private businesses like these rules.

  • Since April 2012, about 83% of all IPO registrations and 87% of all completed IPOs have been from EGCs, according to Ernst & Young.
  • In 2016, the SEC received 204 confidentially-submitted filings for IPOs. Between April 2012 and the end of 2016, the total number stood at approximately 1,250.

The new rule goes into effect on July 10.

Go deeper

#MeToo gets Weinstein

A man carries out Weinstein's walker. Photo: Johannes Eisele/AFP/Getty Images

Hollywood titan Harvey Weinstein is now a convicted rapist, two years and four months after accusations against him helped ignite the #MeToo movement.

Why it matters: To date, #MeToo has resulted in hundreds of powerful men losing their jobs. Seven have been criminally convicted, with four others still facing charges.

JPMorgan Chase to pull support for some fossil fuels

Illustration: Sarah Grillo/Axios

JPMorgan Chase said Monday that it won’t directly finance new oil and gas development in the Arctic and will significantly curtail its financing of the extraction and burning of coal.

Why it matters: JPMorgan is the world’s largest funder of fossil-fuel companies, according to a report by the Rainforest Action Network (RAN). The announcement follows similar moves by other big banks and investment firms, including Goldman Sachs and BlackRock.