What Is IPO LockUp Period?

IPO Intelligence • The IPO Process

What Is the IPO Lock-Up Period?

Why insiders can't sell for 180 days.

Cluster: The IPO Process • Type: Evergreen Guide • Pillar: IPO Intelligence

Defined

Contractual restriction, not SEC law. Prevents insiders selling immediately after IPO.

Typical Terms

180 days standard. 90 days for large caps. 365 days for some founders.

Who Is Locked

Founders, executives, employees, VCs/PE — 100% of pre-IPO holdings. Company also locked from issuing shares.

Expiration Impact

Day 180, ~80% of shares become eligible to sell. Creates overhang. Stocks often dip 1-5% into expiry.

How to Track

Search S-1: "Shares Eligible for Future Sale" and "Lock-Up Agreements". Calendar: IPO Date + 180.

This is the final step in The IPO Process. Return to hub for full timeline.

Continue The IPO Process

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