Can Atkins 'make IPOs great again'?

You want to stay private as long as possible," Edwin Chen, the founder of Surge AI, recently told The New York Times. His company, he said, has about $1 billion in annual revenue and is definitely not considering an initial public offering right now.

- Niko Gallogly

Paul Atkins in 2011. Mr Atkins, who is now chairman of the Securities and Exchange Commission, has said he wants to 'make IPOs great again.'

(GETTY)

Despite a soaring stock market, an increasing number of executives seem to share Mr Chen's philosophy: The number of US public listings dropped from a peak of 8,090 in 1996 to 4,010 last year, according to data from the World Bank.

Fewer companies are filing for IPOs, and more public companies are being taken private.

That's a problem for those who consider public markets to be a critical economic engine. And Paul Atkins, the Trump-appointed chair of the Securities and Exchange Commission, has vowed to "make IPOs great again."

His plan focuses on reducing hassle for public companies. Will it work?

The chair blames onerous regulation and legal challenges for most of the listings decline. In an interview, he discussed three strategies for reducing the expense of becoming and staying a public company:

■Cut down on required reports and disclosures. "Disclosure isn't meant to be a torture for somebody," Mr Atkins said. "It's meant to provide information, material information, to investors so that they know what they're investing in." The SEC has said it will prioritise President Donald Trump's proposal to end quarterly reports, for example. Critics argue that such changes reduce transparency for investors and increase the potential for fraud.