Going Public Dissecting IPO Form S1 Prospectus last

Going Public Dissecting IPO Form S-1 / Prospectus (last updated 12 Feb 13)

Regulation Ex ante disclosure Ex post enforcement Info Price Market forces ECMH Intermediaries

Securities Act of 1933 Section 5 (a) Unless a registration statement is in effect as to a security, it shall be unlawful for a person, directly or indirectly-- (1). . . to sell such security. . . (b) It shall be unlawful for any person, directly or indirectly-- (2) to [have delivered]. . . such security. . . unless accompanied or preceded by a prospectus that meets the requirements of section 10(a). (c) It shall be unlawful for any person, . . . to offer to sell [a security]. . . unless a registration statement has been filed as to such security, . . . Regulation of public offering

Public Offering - Regulation • Prospectus disclosure – – – – Issuer’s business, risks Management MD&A Financial statements Plans for proceeds Nature of offering Principal shareholders • Signed by issuer and corporate insiders

Public Offering - Regulation Registration system • Controlled disclosure – no marketing until RS filed – no sales until RS effective • SEC review • Liability for misrepresentations – – – Issuer (strict liability) Top executives Directors Underwriters Experts (accountants)

’ 33 Act Registration Statutory Regulatory • • What disclose? Form S-1 [description of forms] • Itemized? Reg S-K • Red herring? Rule 430 • Final prospectus? – Rule 424 – Rule 430 A Who signed? § 6(d) Filing fee? § 6(b) Effective date? § 8 / Rule 473 How disseminate? § 5(b) What info? § 7 SEC disclaimer? § 23

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Registration Statement • Cover Page: Terms of IPO – Info to SEC – Who contact? Fees? • Part I: Prospectus – Info to investor – Company story – Audited financials • Part II: Additional info – – How much IPO cost Indemnification Sales of unregistered stock Signatures • Exhibits – Treasure trove – Can be filed confidentially • EDGAR • Form S-1/A • Rule 424(b)

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