New Stealthy IPOs Kick In This Week
By Eve Tahmincioglu
As of this week, private companies looking to go public can now do it with little attention.
The Securities and Exchange Commission's new rule allowing companies to file initial public offering (IPO) paperwork confidentially kicked in Monday and the agency's Chairman Jay Clayton sees it as a boon for public markets that have seen declines in recent years.
It could lead, he said in a statement, to “efficiency in our processes to encourage more companies to consider going public, which can result in more choices for investors, job creation, and a stronger U.S. economy."
The number of publicly traded companies has been on the decline, with more and more companies opting to stay private or delay initial public offerings, or IPOs.
The allure of being private may be one reason for the decline in initial public offerings and the overall number of publicly traded firms, according to a recent Fortune article.
Clayton addressed the issue of faltering public markets during his confirmation hearings and has followed through on his promise to make them more attractive to private companies.
"It is clear that our public capital markets are less attractive to businesses than in the past. As a result, investment opportunities for Main Street investors are more limited," he said. "Here, I see meaningful room for improvement.”