Lon Gorman Comments on New "Confidential" IPO Process

Share Article

The JOBS Act has made it possible for companies to file for their IPOs with relative confidentiality; this change to the filing process has drawn the attention of financial services veteran Lon Gorman.

Among technology companies, secrets abound; indeed, it is no stretch to say that tech firms place a high priority on keeping their product developments and technical processes as confidential as possible. A new IPO filing process is poised to take that secrecy to a new level, however; the JOBS Act has effectively instituted a new filing process, allowing companies with less than $1 billion in revenue to keep filings confidential until 21 days before the actual public offering. A recent San Jose Business Journal article notes that many tech companies have already taken advantage of this new confidentiality—and the report has drawn the attention of financial services veteran Lon Gorman.

Lon Gorman, currently an Independent Board Member at the New York-based Lightspeed Financial Group, has worked in trading and investment for decades. He is most widely known for his work at Charles Schwab, though he has been with Lightspeed since 2010. Lon Gorman has issued a new press statement, responding to the Business Journal article and ultimately praising the new, confidential filing process.

“At the end of the day, the confidential IPO Process creates an invaluable alternative for startup companies,” Gorman remarks, in his new press statement. “It will encourage companies to file earlier and gauge the demand in a more cost-efficient manner before actually filing. It also has the potential to speed up the process.”

In keeping with Gorman’s words of praise, some companies have already begun taking advantage of the confidential IPO process. The Business Journal article notes that Violin Memory, a maker of flash memory products, has been heavily rumored to be one of those companies.

The article in the San Jose Business Journal goes on to note that, according to IPO experts, the confidential process comes with many pros, and perhaps a few cons. For example, companies can keep their IPO plans a secret, so if they are forced to cancel or to delay, nobody knows about it—which allows businesses to avoid unwanted, negative publicity. The article also affirms Lon Gorman's point, which is that the confidential process allows companies to discreetly test the waters, evaluating investor interest before going all the way.

The Business Journal feature also notes that filing confidentially can potentially rob the IPO of its potential marketing potential. When a company files confidentially, it loses the chance to turn the IPO into “a big marketing event.”

Lon Gorman is a long-time financial service professional whose areas of expertise include his work in electronic trading. Mr. Gorman is no stranger to the initial public offerings process, and has long been a vocal and highly public expert in this field.

ABOUT:

A veteran of the financial services industry, Lon Gorman has served in a variety of capacities for such esteemed companies as Charles Schwab. Currently, he serves as an Independent Board Member for Lightspeed Financial Services. Mr. Gorman’s previous experience includes positions at NASDAQ OMX and NYFIX. His professional focuses are on risk management and electronic trading. Lon Gorman has been with Lightspeed Financial Services since the end of 2010.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Ellen Dubusk
PR Management Inc.
484-362-9658
Email >