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Encouraging Public Offerings Act of 2023
12/15/2023, 3:57 PM
Summary of Bill HR 2793
One of the key provisions of the bill is the creation of a new category of public offering called an "emerging growth offering." Companies that qualify as emerging growth offerings would be subject to less stringent regulatory requirements, making it easier and less costly for them to go public.
Additionally, the bill includes measures to streamline the initial public offering (IPO) process, such as reducing the amount of time it takes for companies to go public and simplifying the disclosure requirements for IPOs. The Encouraging Public Offerings Act of 2023 also aims to increase access to capital markets for smaller companies by expanding the use of Regulation A, which allows companies to raise capital through mini-IPOs without having to go through the full IPO process. Overall, the bill is designed to encourage more companies to go public and to make it easier for them to do so, with the ultimate goal of promoting economic growth and job creation in the United States.
Congressional Summary of HR 2793
Encouraging Public Offerings Act of 2023
This bill provides statutory authority for all issuers of securities to use certain offering procedures that are available to emerging growth companies.
Specifically, the bill allows under statute issuers of securities to communicate with potential investors to ascertain interest in a contemplated securities offering, either before or after the filing of a registration statement (i.e., test the waters).
Additionally, issuers are allowed under statute to submit a confidential draft registration statement to the Securities and Exchange Commission (SEC) for review prior to public filing or within one year after the initial public offering or registration (i.e., a follow-on offering).
If the SEC pursues further rulemaking to related to these provisions, the SEC must submit a report to Congress supporting the basis of the rulemaking.
