After four years of virtual stasis, Securities and Exchange Commission (SEC), Small Business Capital Formation Advisory Committee (SBCFAC) is doing what it needs to do and looking for ways to improve the markets. The committee’s next meeting, scheduled for April 28, will discuss the moribund IPO market and why the number of public firms has been declining for years.
While private markets are growing rapidly, fewer companies in public markets have decided to go public. This is due in part to the ocean of private capital willing to invest in a promising firm before it goes public. While there may be other factors, when you combine the aforementioned access to capital with the cost of being a publicly traded company, there’s a pretty strong reason why there were more than 7,000 public firms at the turn of the century and about half that number today. Current leadership at the SEC has publicly stated its goal of improving both public and private markets, something the SEC should have pursued years ago.
Make IPOs Great Again
SBCFAC will begin the meeting by discussing the current regulatory framework and how reduced IPO activity is affecting companies (and investors). Edwin O’Connor, Goodwin Procter’s Capital Markets Partner and Co-Head will offer his views on the IPO market, trends and potential drivers.
Later in the day, Beau BohmGeneral Manager and Global Co-Head of Equity Capital Markets Cantor FitzGeraldHe presented his perspective from the insurer’s perspective.
The meeting will begin at 10 a.m. on April 28 and will be broadcast live on the SEC’s website. The agenda is shared below.
