Encouraging Public Offerings Act of 2017

Bill 115 hr 3903, also known as the Encouraging Public Offerings Act of 2017, aims to promote the public offering of securities by reducing regulatory burdens on smaller companies. The bill was introduced in the House of Representatives on September 28, 2017 by Rep. Ted Budd (R-NC).

The main provisions of the bill include increasing the threshold for companies to qualify as an "emerging growth company" from $1 billion to $1.5 billion in annual gross revenue. This change would allow more companies to take advantage of the reduced regulatory requirements for initial public offerings (IPOs) that are available to emerging growth companies.

Additionally, the bill would exempt certain smaller companies from the requirement to provide audited financial statements in their IPO registration statements. This exemption is intended to reduce the costs and administrative burdens associated with going public for these companies. Overall, the Encouraging Public Offerings Act of 2017 is aimed at making it easier for smaller companies to access public capital markets and raise funds through IPOs. Proponents of the bill argue that reducing regulatory barriers will encourage more companies to go public, which can lead to increased job creation and economic growth. Critics, however, raise concerns about potential risks to investors if regulatory requirements are relaxed. The bill was referred to the House Committee on Financial Services and has not yet been brought to a vote on the House floor. It is important to note that the information provided in this summary is based on the text of the bill as of its introduction date and may be subject to changes as it moves through the legislative process.