investor interest: The proposal expands a so-called testing-the-waters technique to all potential public companies so they can gauge institutional investor interest in advance of an IPO filing, according to Market Watch. The benefit is currently available to only to emerging growth companies or EGCs generally companies with less than 1 billion in annual revenue. On Tuesday the SEC issued a proposal that would give another benefit of the 2012 JOBS Act to all companies. It was an idea that Congress pursued in the stalled JOBS Act 3.0 legislation. The testing the waters provision would be extended to all issuers, including investment company issuers. According to a Wall Street Journal article, about a quarter of EGCs that went public in 2016 and were eligible to test the waters took advantage of the benefit by sharing details about revenue sources, corporate strategy, and the background of top management.
(news.financializer.com). As
reported in the news.
Tagged under investor interest, growth companies topics.