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

The EU makes its move on a green coronavirus recovery

Illustration: Sarah Grillo/Axios

The European Commission this morning proposed a $825 billion package of economic responses to the coronavirus pandemic that includes financing for renewable energy, electric vehicle charging and other emissions-friendly projects.

Why it matters: The energy components of the "Next Generation EU" plan, part of a wider multi-year budget proposal, appear to be the most substantial attempt yet to stitch low-carbon investments into economic recovery plans.

Zipline drones deliver masks to hospitals; vaccines could be next

Zipline's drone drops medical supplies via parachute. Image courtesy of Zipline.

Zipline, a California drone company, has made its U.S. debut by delivering medical supplies to hospitals in North Carolina under a pilot program honed in Africa.

Why it matters: The effort, made possible by a waiver from the Federal Aviation Administration to Novant Health, is the nation's longest-range drone delivery operation and could demonstrate how drones could be used in future pandemics, Zipline officials said.

NHL unveils 24-team playoff plan to return from coronavirus hiatus

Data: NHL; Table: Axios Visuals

The NHL unveiled its return-to-play plan on Tuesday, formally announcing that 24 of its 31 teams will return for a playoff tournament in two hub cities, if and when medically cleared.

Why it matters: Hockey is the first major North American sports league to sketch out its plans to return from a coronavirus-driven hiatus in such detail, and it's also the first one to officially pull the plug on its regular season, which will trigger ticket refunds.