Confidentially Marketed Public Offerings

Summary

This practice note discusses key transactional, regulatory, diligence, compliance, and other aspects of CMPO offerings. Confidentially marketed public offerings (CMPOs) are, arguably, one of the most sophisticated and the most flexible of securities offerings. As compared to traditional public offerings, CMPOs are attractive because of their minimal market impact, shorter time to completion, lower cost of execution, and adaptability to changing market circumstances. A public company undertaking a CMPO can access an opportune market window to quickly execute a capital raise or, if need be, abandon the offering altogether, without any material market consequence or pressure on its stock.