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Can anybody explain why a company would want to file for an IPO in confidentiality?

Wouldn't it be in the best interest of the company to get some PR going before the roadshow starts?

Unless they just want to test the waters and intend to pull the IPO in case they wont get the valuation they hoped for... (which again would be a terrible signal for potential IPO investors)



They don't have to publish all of their financials just yet. With the confidential IPO process, they can send in their mostly-correct figures and go through some back-and-forth with the SEC to ensure they are reporting earnings etc in a manner that satisfies the SEC. If they disclosed their figures publicly, as larger companies going public are required to do, they risk a backlash from investors or the media when they later revise their figures, even if due to an honest mistake. Keeping their figures secret from competitors, suppliers and customers for as long as possible is also a competitive advantage.


Just remember all the terrible press Groupon got whenever the SEC didn't like the non-gaap gimickry in their original S-1.

http://www.cbsnews.com/news/groupon-tries-to-make-the-sec-ha...




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