Twitter's IPO lock-up for certain employees expires tomorrow, Saturday February 15. This means that up to 9,867,228 shares of Twitter's common stock could hit the market on Tuesday, February 18, representing roughly 1.8% of Twitter's outstanding shares. This is a small amount, and the market should absorb this pretty easily. The shares subject to this lockup are held by non-executive employees who will be able to sell these shares to satisfy income tax obligations relating to prior stock grants.
The lockup expires in May for the rest of the 474 million shares, and the market reaction at that time will be very interesting to watch.
Here's a link to a WSJ Digits blog post on the lockup:
http://blogs.wsj.com/digits/2014/02/13/twitters-first-lockup-expires-on-saturday/
Here's a link to Twitter's IPO prospectus (to the Underwriting section that discusses the lockup):
http://www.sec.gov/Archives/edgar/data/1418091/000119312513431301/d564001d424b4.htm#toc564001_21
The lockup expires in May for the rest of the 474 million shares, and the market reaction at that time will be very interesting to watch.
Here's a link to a WSJ Digits blog post on the lockup:
http://blogs.wsj.com/digits/2014/02/13/twitters-first-lockup-expires-on-saturday/
Here's a link to Twitter's IPO prospectus (to the Underwriting section that discusses the lockup):
http://www.sec.gov/Archives/edgar/data/1418091/000119312513431301/d564001d424b4.htm#toc564001_21
