Such quiet filings allow for preliminary information to become available in advance of further detailed information, thereby reducing the amount of subsequent paperwork. Once the required paperwork is assembled, the company can then complete the announcement of the IPO. this quiet filing ideally results in the publication of a preliminary prospectus, which initiates the process of marketing the IPO.
Quiet filings allow a company time to resolve such issues as the number or timing of shares to be offered to the marketplace or the naming of an underwriter for the new issue. It also offers the company some time to work with the SEC to resolve issues that would otherwise induce a protracted SEC review.
In effect, the quiet filing is often little more than a successful registration statement that gives notice to the SEC about a future IPO and permits the SEC and the company to interact to move toward a successful IPO preliminary prospectus.