Step 7: Revisions to the Registration Statement

It is the SEC’s job to thoroughly scrutinize your preliminary registration statement and prospectus to see how well you have complied with all the rules and regulations. They almost always request revisions.

According to the regulations, the SEC is supposed to inform you of the deficiencies in your preliminary filing through an official “letter of comments” sent back to your lawyers. Once this is received, the IPO team meets and decides how to correct each deficiency. Then, after a series of additional drafting sessions take place, the company’s lawyers file amendments to the registration statement.

If the SEC still isn’t satisfied, they may send additional comments back and require further revisions. The registration will not be approved until the SEC determines that all deficiencies have been resolved.

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