New IPOs Take Advantage of JOBS Act

NEW YORK — Fairway Market here is taking advantage of a new law that seeks to make it easier for relatively small companies to sell stock, according to a report in Crain’s New York Business.

The Jumpstart Our Business Startups Act, or the JOBS Act, which was enacted April 5, allows companies that have less than $1 billion in annual sales to bypass some of the restrictions that are imposed on larger companies that seek to raise money with an equity offering.

As previously reported, Fairway, which operates a small chain of high-volume supermarkets in the New York metro area, is said to be planning an initial public offering, although it has not yet filed public documents with the Securities and Exchange Commission. Under terms of the JOBS Act, it can wait until shortly before the offering to file, and only needs to disclose two years’ worth of financial data, instead of three.

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Neither Fairway nor its majority owner, Sterling Investment Partners, could be reached for comment.

Lakewood, Colo.-based Natural Grocers by Vitamin Cottage, which went public late last month, also was able to file its IPO as an “emerging company” under the JOBS Act.

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