SEC Proposes to Expand “Test-the-Waters” Modernization Reform

The SEC has issued a proposed rule, Solicitations of Interest Prior to a Registered Public Offering.

The proposal would allow all potential issuers, not just emerging growth companies, “to engage in test-the-waters communications with certain institutional investors regarding a contemplated registered securities offering prior to, or following, the filing of a registration statement related to such offering.”

Comments on the proposed rule are due 60 days after the date of its publication in the Federal Register. For more information, see the press release and proposed rule on the SEC’s Web site.