The section of a prospectus describing what a company intends to do with the money it raises in its offering — commonly working capital, debt repayment, research and development, or acquisitions. It's a required disclosure in every S-1/F-1 filing.
What a company plans to do with IPO proceeds is a direct signal about its priorities: proceeds earmarked mostly for debt repayment suggest a balance-sheet-driven raise, while proceeds for R&D or expansion suggest growth ambitions. It's one of the more overlooked sections of a prospectus, but often the most telling one about what the company actually needs the money for, rather than what its marketing narrative emphasizes.
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