Uber Lockup Expiration Expected to be Muted

Uber Lockup Expiration Expected to be Muted
Uber Lockup Expiration Expected to be Muted

Uber shareholders will be visualizing Wednesday as a remarkable day as they would be able to sell most of their shares after the company’s IPO which was done six months ago. It was warned by the analysts that the lock-up expiration can cause an avalanche of selling early stocks. However, on Tuesday, the company’s underwater or even deeper in the red marks have surged by 9% to $28.38. An estimated figure, out of 1.7 billion of Uber shares, 1 billion of shares have been already locked up since IPO in May this year. Wednesday is the expiring day of these stocks. Analysts have stated that around 90% of Uber stocks are available for sale along with some insiders who are restricted from unloading their portions of stake. According to the company’s prospectus of IPO, around 545 million shares or 32% of the current supply of shares were bought at $32.97 or more.  Uber priced its IPO at $45 in May. But the shares have since then lost 37% of their value that made the company suffer their latest blow after it reported a quarterly net loss on Monday afternoon of over $1 billion.

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