Rep. Fincher’s IPO 2.0 Bill Improves On-Ramp Process, Unanimously Passed By Committee
FOR IMMEDITATE RELEASE Contact: Elizabeth Lauten
Friday, March 14, 2013 Phone: (202) 225-4714
Washington, D.C. – This morning the House Committee on Financial Services passed Congressman Stephen Fincher’s (R-Frog Jump) IPO 2.0 bill making improvements to the IPO on-ramp process for a new category of issuers created in Title I of the JOBS Act known as “emerging growth companies,” or EGCs, by a unanimous vote of 56-0.
“This bill is all about job creation," said Fincher. "Small companies are our nation’s best job creators, but have been the hardest hit by burdensome regulations. This bill improves Title I of the JOBS Act, which has had tremendous success, and afforded many companies the opportunity to go public and create jobs for hardworking Americans. I am pleased the Committee voted in favor of my bill, which will allow more companies to expand and create more, quality American jobs."
The Improving Access to Capital for Emerging Growth Companies Act would do the following:
- Reduce the number of days EGCs must have a confidential registration statement on file with the SEC from 21 days to 15 days,
- Allow a one year grace period for an issuer that began the IPO process as an EGC to complete its IPO as an EGC,
- And clarify financial disclosure requirements for EGCs.
Congressman Stephen Fincher (TN-8) first introduced the IPO 2.0 bill in November 2013 with Congressman John Delaney (D-MD). Fincher is the original author of Title I of the bipartisan JOBS Act, which created the category of the Emerging Growth Company. Since the JOBS Act was enacted into law in April 2012, 561 companies have gone public as emerging growth companies, which is 84% of all IPOs according to the SEC. On average, 92% of a company’s job growth occurs after an IPO.