Growth Cos. Should Disclose Projections In IPO Prospectuses

By Spencer Feldman (April 9, 2021, 6:02 PM EDT) -- Initial public offerings of early-stage and smaller companies — and many times larger emerging companies in quickly evolving industries — are typically focused around an issuer's future growth initiatives.

Ironically, IPO prospectuses of these early-stage and growth companies lack any financial projections quantifying the impact of their initiatives, even while, anecdotally, their investment bankers encourage such projections as a necessary tool to market and price an offering successfully.

The Nasdaq Stock Market, as part of its listing review, frequently conditions its approval on receiving internal financial projections to confirm continuing eligibility following the IPO.

And, in a de-SPAC transaction, in which...

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