Republished with full copyright permissions from The San Francisco Press.

As the holiday season approaches, the tradition of giving books that may never be read persists, despite the rise of e-readers. These often expensive yet unappreciated gifts may ultimately end up in the trash or resold. However, as we contemplate the cost-effectiveness of these unread books, they pale in comparison to a far more extravagant and largely unread collection: IPO prospectuses.

Consider the case of Arm Holdings, which incurred a staggering cost of $900,000 to draft and print its IPO prospectus, of which only a mere 100 copies were produced. This lavish expense, while justified by the substantial returns it yielded, raises questions about the necessity and purpose of such opulent presentations.

Similarly, companies like Square and Pinterest invested substantial resources in the design and presentation of their prospectuses, turning them into visually appealing and intricate works. However, the question arises whether the extensive production values align with the core purpose of these documents, especially when considering the environmental impact of printing thousands of pages that may go unread.

This trend prompts us to reevaluate the essence and value of IPO prospectuses. Rather than merely conveying financial information, these documents have evolved into ornate showcases akin to holiday cards or extravagant catalogs, often missing the mark in delivering essential, digestible content.

Ultimately, the exorbitant investment into the physical production of these prospectuses might signal a diversion of focus from critical business aspects. As Franklin Templeton portfolio manager Jonathan Curtis suggests, an emphasis on the visual appeal of a prospectus could potentially detract from the more significant management priorities.

In light of these observations, it becomes apparent that the colossal expense incurred in the creation of these largely overlooked documents warrants scrutiny. The disconnect between the extravagant nature of these prospectuses and their ultimate purpose signals a need for reevaluation within corporate practices.

As we navigate the holiday season, let us contemplate not only the value of the gifts we exchange but also the underlying sentiment and purpose they bear. The $900,000 tomes that may never be read serve as a striking reminder of the importance of aligning investment with genuine impact and purpose.