This was a benefit previously limited to emerging growth companies under the JOBS Act. Allowing more companies to participate in a non-public review will permit greater flexibility in planning a securities offering. The non-public review process after the IPO also reduces the potential for a lengthy exposure to market fluctuations, which can have negative effects on the offering process and existing shareholders.

Bill Hinman, the Director of the Division of Corporation Finance, called this extension of the JOBS Act benefit an important step that will help foster capital formation and provide investment opportunities while protecting investors. He added, “This process makes it easier for more companies to enter and participate in our public company disclosure-based system.”

“By expanding a popular JOBS Act benefit to all companies, we hope the next American success story will look to our public markets when they need access to affordable capital,” said SEC Chairman Jay Clayton. The change will take effect on July 10, 2017. There will be no impact on the process by which emerging growth companies obtain confidential review. Reviews should be requested in a cover letter, abiding by the guidelines set forth by the Division of Corporation Finance. For more information, see the Division of Corporation Finance’s public announcement.

Sources

SEC's Division of Corporation Finance Expands Popular JOBS Act Benefit to All Companies (sec.gov)
Draft Registration Processing Procedures Expanded (sec.gov)