This may impact the ultimate gain or loss and also, regarding Box, it is subject to a customary IPO lock-up
period and is obligated not to sell the shares of common stock it owns, for six months from the date of the IPO.
Morsfield and Tan (2006) show that such result is robust to controls such as the endogenous choice for PEVC financing, IPO lock-up
provisions, and PEVC exit subsequent to the IPO.
LLC is releasing a lock-up restriction with respect to certain shares of ServiceNow's common stock held by a director of ServiceNow to be sold in the proposed offering and, in addition, is granting a waiver to a specific provision found in all of the IPO lock-up agreements that were entered into by ServiceNow and ServiceNow's security holders.
The specific provision in the IPO lock-up agreements being waived is the lock-up extension provision that may extend, upon the occurrence of certain events, the 180-day IPO lock-up period for an additional period of up to 34 days.
When an IPO lock-up
period expires, more shares are available for trading, placing a greater supply of stock in the stock market.
Due to the regulation of IPO lock-up period, our sample firms are basically free of threat of takeover.
In this paper, we argue that for the sample of Taiwan IPOs the level of managerial ownership during the IPO lock-up period is high enough to control the firm.
The company said that its director will sell the stock in the proposed offering, adding that Morgan Stanley is granting a waiver to a specific provision found in all of the IPO lock-up agreements signed by ServiceNow and its securityholders.
This waiver is limited solely to the Extension Provision and does not waive or release in any other respect the IPO lock-up agreements that are scheduled to expire on 25 December 2012.