IPO Lockups and Insider Trading

Wasim Ahmad, Wolfgang Aussenegg, Ranko Jelic

Research output: Working paper/PreprintWorking paper


We examine directors’ and VC firms’ dealings before, at and after lockup expiry from a sample of 201 UK IPOs during the period 1999-2014. We report an increase in number of IPO lockups which are allowed to prematurely lapse for some investors. Overall, directors and VC firms tend to sell and purchase in contrast to the prevailing market sentiment. The exceptions are directors’ purchases before expiry and VC firms’ (complete) sales after expiry. Director dealings, especially purchases, produce a stronger price impact than dealings of VC firms. Among insiders, dealings of founder-CEOs generate the strongest price impact.
Original languageEnglish
Publication statusUnpublished - 2017


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