5 ms·
Don't buy at IPO. Buy after the lockup expires.
by atlgator 5y ago
Don't buy at IPO. Buy after the lockup expires.
- stevofolife 5y agoHow do one check this?
- hkmurakami 5y agotypically 6 months / 180 days.
- 55555 5y agoProbably in the S1
- flanbiscuit 5y agoLooks like 180 days Page 63 https://www.sec.gov/Archives/edgar/data/1720671/000119312521319849/d205906ds1.htm https://www.sec.gov/Archives/edgar/data/1720671/000119312521... "We and all of our directors, officers, and holders of approximately % of our outstanding stock and equity securities are subject to lock-up agreements with the underwriters that restrict their ability to transfer such shares of stock and such securities, including any hedging transactions, during the period ending on the date that is 180 days after the date of this prospectus, as further described in the section titled “Shares Eligible for Future Sale.”
- _blz2 5y agoIts usually 6 months. But there may be an alternative 'limited' lock up triggered earlier if the stock price is above a certain level continuously for a certain period of time.
- financetechbro 5y ago424B4 (final prospectus) under the section “shares eligible for future sale”, there will be a lockup section.
- mancerayder 5y agoIs that the pattern of other IPOs? I've seen lots of 'lockup expiry' fud that never materialized. No sudden dump of employee shares.
- oh_sigh 5y agoCloudflare(NET) was ~$18 at IPO. It was ~$19 at lockup expiration 180 days later(versus nasdaq being a few percent down). If you bought at IPO you'd be up 734% but at lockup you'd be up only 688%.
- weird-eye-issue 5y agoOh come on. NET stock was and is so volatile that a 5% difference is hardly anything to go by for future decisions
- oh_sigh 5y agoRight. My point was that timing of @IPO or at the end of lockup was largely irrelevant
- deleted 5y ago[deleted]
- alephnan 5y agoThere's also CloudFoundry which has been strong since IPO
- tomrod 5y agoI gor hit by this once. Never again.
- politelemon 5y agoWhat happens after lockup expires?
- Leherenn 5y agoEmployees who own shares before the IPO are often prevented from selling them right as the company IPO, that's the lockup period. After this period (often 6 months), they are allowed to sold their shares. The reasoning of GP is that a lot of shares will be sold right after the lockup expires (because employees want to cash-in/diversify), artificially depressing the price.
- oblio 5y agoAre the executives included in these measures?
- nullspace 5y agoYes, and even investors.
- financetechbro 5y agoYes. However, a significant portion of Tech IPOs have a modified lockup which allows selling of a portion of lockup shares based on some event triggers (earnings release + stock performing +x% from issuance price). Lockup agreements are negotiable and can vary from one IPO to another.