Lawyers Applaud the Rare Flexibility
“With this latest SEC guidance, companies can now move forward using a price range rather than a fixed figure,” said Ryan Adams, a public company advisory partner at Morrison Foerster LLP. “It’s a crucial lifeline for firms navigating this shutdown.”
A memo from Ropes & Gray LLP further explained that firms can amend pending filings or submit new registration statements minus the delaying amendment. However, they must still heed federal anti-fraud laws and account for any unresolved SEC comments.
SEC’s Intent: Keep the Market Moving
Freshfields LLP partners Erik Gerding, Melissa Hodgman, and Michael Levitt said in a Thursday blog post that the SEC “is clearly trying to keep IPOs flowing” despite the shutdown. “This could allow more companies to price and close offerings,” they wrote, especially those racing against the clock before financial data expires.
The Commission also provided a contingency plan for when government operations resume. Companies that previously dropped delaying amendments can request accelerated approvals—so long as they reintroduce the amendment before the 20-day window ends.
