One of the biggest advantages of a confidential IPO over the traditional IPO is that it gives companies more flexibility and control over their eventual public offering. A company can file the S-1 form with the SEC without having to determine how many shares it plans to sell and what price those shares will be.
Another advantage is that companies can keep sensitive information away from the eyes of their competitors. Paperwork filed in a traditional IPO can include financial information like revenues and losses, possible risks, and company goals, which is then made available for public view on the SEC website. It’s a great tool for investors to look at when deciding whether to invest in the company, but it also lays bare everything for a company’s competition to see.
Companies that file confidential IPOs also have more flexibility in when they go public, if at all. Instead, the company could decide to withdraw its IPO or pursue a merger with a SPAC.
View more information: https://marketrealist.com/p/confidential-ipo/