Reps. Meeks and Budd’s Bipartisan Legislation Encouraging IPOs Passes Financial Services Committee
Washington, D.C.—Congressman Gregory W. Meeks, a Senior Member of the Financial Services Committee, and Congressman Ted Budd (R-NC) released the following joint statement after the House Financial Services Committee passed H.R. 3903, their bipartisan bill encouraging initial public offerings (IPO) for private companies:
“IPOs are an effective option for businesses to access capital and expand, thereby creating jobs for hardworking Americans across our nation,” said Rep. Meeks. “By streamlining the IPO process while maintaining sensible investor safeguards, our bill successfully balances economic growth and consumer protection. I am encouraged by the Committee’s bipartisan passage of H.R. 3903, and I encourage all my colleagues in the House of Representatives to support this commonsense measure.”
“People with money have been getting together with people with ideas for a long time,” said Rep. Budd. “The public stock exchanges are a major way we do that now, connecting ideas and the money that makes them possible. We’ve got the same number of public companies today as we did in the early 1980s, when the economy was much smaller. Our legislation is a step towards making going public more attractive, getting our financial markets back towards being the number one method for capital formation
The Budd-Meeks bill has three provisions:
-First, it would expand the JOBS Act’s confidential registration provisions beyond emerging growth companies to all issuers.
-Second, it would allow confidential registration for follow-on offerings for all issuers. Current law provides this capacity only to emerging growth companies. Both of these provisions would codify into law actions undertaken by the Securities Exchange Commission earlier this year.
-Finally, the Budd-Meeks legislation would expand the testing the waters provision in the JOBS Act to all issuers, allowing companies in the initial public offerings process to gauge accredited and institutional investor interest in a securities offering.