SpaceX Lockup Period: What You Need to Know About Potential Sales by Longtime Shareholders
SpaceX's historic IPO may happen on June 12.
SpaceX Lockup Period: What You Need to Know About Potential Sales by Longtime Shareholders
Overview
SpaceX hasn't even launched its historic initial public offering, and we're already talking about selling the shares? Well, it's important to remember that certain investors have backed the SpaceX story for quite some time in the private market, and though they may still strongly believe in the company's future, some of them may want to lock in some gains too. For example, Ark Invest's Ark Venture Fund has seen the company's valuation climb from $350 billion just two years ago to possibly $1.7 trillion post-IPO.
We don't know the specific plans of Ark Venture, but it wouldn't be surprising if early investors in the company sold some shares in the near future to benefit from SpaceX's incredible gain. Here's an important point, though: They can't do it right away. Lockup periods are put into place around IPO stocks, preventing early investors from selling immediately after the operation. SpaceX is on track to launch its IPO on June 12.
Details
Let's zoom in on SpaceX's lockup period to find out the details and how this may impact stock performance.
Source
Originally published at www.fool.com.
