NYC Gazette

WASHINGTON, D.C. – The House of Representatives passed H.R. 2793, the Encouraging Public Offerings Act of 2023, sponsored by Rep. Gregory W. Meeks (D-NY) and Rep. Ann Wagner (R-MO) last night. The bipartisan legislation ensures that all issuers can test the waters on going public in order to gauge interest and feasibility before committing to a public offering.

“As an entrepreneur, the decision to go public is extremely consequential,” said Rep. Meeks (NY-05). “It gives them access to funding, the ability to expand their proposals and create job opportunities. However, the current framework doesn’t enable these companies to grow sustainably. Additionally, while protecting investors by maintaining reasonable safeguards, Congress must step in to reform the framework and create an efficient process that keeps IPOs possible for developing businesses, while maintaining investor protections.”

“It’s evident that the House recognizes the value of expanding these useful tools to a bigger pool of growing businesses. I look forward to my Senate colleagues moving this bipartisan bill soon.”

The following provisions are detailed in the bill:

• Expands confidential registration provisions beyond emerging growth companies to all issuers.
• Allows confidential registration for follow-on offerings for all issuers. Current law provides this capacity only to emerging growth companies. Both provisions would codify into law actions undertaken by the Securities Exchange Commission.
• Expands testing the waters provisions to all issuers, allowing companies in the initial public offerings process to gauge accredited and institutional investor interest in a security offering.

Original source can be found here.