Understanding Confidentially Marketed Public Offerings (CMPO)
Understanding Confidentially Marketed Public Offerings (CMPO): Advantages and Disadvantages
In this episode, we explore what a CMPO (confidentially marketed public offering) is, along with its pros and cons. A CMPO offers a blend of public and private securities offerings while maintaining discretion before public filing.
Key advantages include confidentiality, reduced market speculation and price volatility, faster execution leveraging pre-existing shelf registration, and targeted marketing to sophisticated investors.
On the downside, CMPOs can lead to shareholder dilution, often involve discounts below market price to attract buyers, and are typically restricted to accredited or institutional investors, limiting broader retail demand.
Disclaimer: Joshua Wilson is a registered investment banking representative and a licensed real estate broker. The content of this podcast is for informational purposes only and should not be considered legal, financial, or compliance advice. This podcast is not a substitute for professional advice. All views and opinions expressed by the host and guests are their own and do not necessarily reflect the policies or positions of any regulatory agency, organization, or employer. Listeners are encouraged to consult their own compliance teams, legal counsel, or financial advisors to ensure adherence to applicable regulations, including SEC, FINRA, and other industry-specific requirements. This podcast does not constitute a solicitation or recommendation for any financial products or services.
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Mike Blankenship
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Mike is the managing partner of Winston’s Houston office, co-chair of the firm’s Capital Markets Practice, and a member of the firm’s Executive Committee. He focuses his practice on corporate finance and securities law, including securities offerings, public company advisory, special purpose acquisition company offerings, private equity and venture capital transactions, mergers and acquisitions, and general corporate representation.