Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
As I understand it (in rough numbers):
There are 45 million shares outstanding.
This includes the 10 million from the IPO.
According to the prospectus, the investors prior to the IPO hold 35 million. Of that, these investors have agreed not to trade 25 million until 180 days from the IPO. So the current float is about 20M shares. The investors average cost of these shares is about $4/share, I think. Once the 180 expires, there will be an increase in Supply (the extra 25M shares) and the average daily trading volume has been steadily decreasing to about 200,000. I would think that some of the 25M would be ready to cash in but who's going to buy?
Law of Supply and Demand would seems to drive the price down.
Is it typical for other IPO's to have this 'lock up' and is there history of big price drops after it expires?
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.