The IPO market has been steadily declining since the early 2000’s. There are a number of factors that are believed to contribute to the IPO market decline. The increasing costs of regulatory compliance for a public company is among the most cited.
To help reinvigorate the IPO market, there have been several legislative attempts to ease the burden on the companies that are going public. On June 29, 2017, the SEC’s new chairman, Walter J. Clayton, introduced new rules that extend to all companies one of the JOBS Act provisions, namely the ability to submit their initial prospectus on a confidential basis.