Overview
A confidentially marketed public offering (CMPO), sometimes referred to as a wall-crossed offering or premarketed offering, is an offering that is initially marketed to specific institutional investors who may have an interest in purchasing the issuer’s securities. During this initial, confidential phase, no public announcement of the offering is made and no preliminary prospectus or free writing prospectus is used. Once the issuer and initial institutional investors agree on the basic offering terms, the offering is then “flipped” into a public offering shortly before pricing so that the underwriter can market the offering more broadly to other institutional investors and to retail investors. Selling efforts may be completed over the next trading day but are often completed on an overnight basis with the final pricing and terms announced before the market opens the next day. The securities then settle and close like a traditional firm commitment underwritten public offering on a T+2 basis. For more information, see Confidentially Marketed Public Offerings.
