IPO Lock-in Periods Ending for 17 Companies, Market Volatility Expected
Imminent Conclusion of Lock-in Periods Poses Market Volatility
The market landscape is set to witness significant changes this month as the lock-in periods for 17 companies, including anchor investors, are coming to an end. Nuvama Institutional Equities predicts that the termination of these lock-in periods often leads to market volatility due to the subsequent liquidation by private equity and institutional investors.
Restaurant Brands: Lock-in Period Conclusion
One notable case is Restaurant Brands, which will see the end of a two-year lock-in period on 20% of promoter equity on Tuesday. With a market cap of 46.02B USD and a P/E ratio of 24.58, Restaurant Brands has shown promising revenue growth of 13.36% LTM2023.Q2. Additionally, InvestingPro Tips suggests that the company has a high earnings quality, with free cash flow exceeding net income, and a consistent increase in earnings per share. These factors could influence investor decisions as the lock-in period comes to a close.
Tracxn Technologies: Conclusion of Lock-in Period
Another significant case is Tracxn Technologies, where a one-year lock-in period on a substantial 38% stake is set to conclude next Wednesday. Tracxn Technologies has a market cap of 28.2B USD and a P/E ratio of 18.8. It has demonstrated revenue growth of 10.59% LTM2023.Q2 and a notable gross profit margin of 40.03%. Interestingly, the company has a perfect Piotroski Score of 9 and yields a high return on invested capital, as per InvestingPro Tips. These insights could be a key consideration for investors as the lock-in period concludes.
Surge in IPO Activity
These events occur amidst a recent surge in IPO activity, with 14 new launches in the previous week. The lock-in periods ending vary in duration, with half of the anchor investors’ shares subject to 30-day and 90-day lock-ins, while extended periods reach up to two years in certain cases. This variance in lock-in durations adds another layer of complexity to the potential market impact.
Potential Market Shifts and Investor Impact
The conclusion of these lock-in periods could catalyze significant shifts in the market as private equity and institutional investors potentially liquidate their holdings. Market participants will closely monitor these developments in the coming weeks. For more insights and tips, consider subscribing to InvestingPro, which provides additional real-time metrics to help you make informed investment decisions.
This article offers a comprehensive analysis of the imminent conclusion of lock-in periods for 17 companies and the potential market volatility resulting from subsequent liquidation. It highlights notable cases such as Restaurant Brands and Tracxn Technologies, presenting key financial metrics and insights for investor consideration. The article also acknowledges the recent surge in IPO activity and the varying durations of lock-in periods. It emphasizes the importance of monitoring these developments and offers a suggestion to subscribe to InvestingPro for further guidance.
