Twitter smart to use SEC's confidential IPO filing tool
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That definitely seems to be the thinking behind Twitter’s decision to file their initial public offering registration statements with the SEC on a confidential basis. How long ago was it that Groupon (GRPN:Q) went through a tortured IPO registration process as that company’s accounting treatment was, in essence, publicly challenged during its initial IPO filing period?
Stubbing your toe even before you’ve gotten out of the gate, to use the market parlance, is to be avoided at all costs. Twitter is smart to take advantage of the SEC’s confidential filing process for “emerging growth” firms with less than US$1 billion of revenue. When the IPO roadshow is 21 days away, all will be made public. That could come very soon, as Dan Primack pointed out this morning over at Forbes.
In the meantime, Twitter gets to bask in one of the benefits from the Jobs Act, and potentially avoid the public airing of any unflattering SEC discussions should they arise.