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Feb 19, 2022 · A standard IPO lock-up period is typically 180 days, while lock-ups for SPAC IPOs normally last 180 days to one year. The chief purpose of an IPO lock-up period is to stop large investors from ...
Sep 21, 2022 · For SPAC sponsors, the lock-up period for SPAC IPOs is typically longer than for traditional IPOs. SPAC Sponsors agree to these longer lock-up periods to provide time for the acquisition company to identify a target company. Most of the SPACs from 2019 and early 2020 provided that the SPAC sponsors are subject to a one year lock-up period.
SPAC IPO after a failed "traditional" IPO in 2019. The size of IPO raises has increased, with several being over US$1 billion. The largest SPAC IPO to date was conducted by Pershing Square in July 2020, raising US$4 billion alongside forward purchase commitments by affiliates of the sponsor of up to US$3 billion. The features of most modern
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Feb 23, 2024 · Understanding IPO Lock-Ups. The purpose of an IPO lock-up is to prevent the flooding of the market with too much of a company's stock supply too quickly. Typically, only 20% of a company's ...
Oct 27, 2020 · In a traditional IPO existing shareholders have to wait six months for their lock-up to expire. Incremental uncertainty: Once the SPAC is announced, the SPAC shareholders have to formally opt-in to the deal. This creates some degree of uncertainty. Additionally, while the terms around employee liquidity are fairly consistent among IPOs, they ...
Aug 21, 2024 · How long is the SPAC lock-up period? ... An IPO lock-up is a contract signed by those investors who own shares prior to an IPO. ... lock-up periods for SPACs generally last 180 days to one year ...
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The law usually does not oblige businesses that want to go public to follow a lock-up period. The lock-up period is normally something that the company and/or the investment banks underwriting the IPO request. The purpose is to prevent excessive volatility and allow the market to find the stock’s true value. How Long is a Lock-up Period? The ...