In a typical IPO, insiders can’t sell shares for up to 6 months — but that isn’t the case with Slack’s direct public offering.
Insiders made a pretty penny in Slack’s (WORK) direct listing this week. But what happens if long-term investors opt to take their profits all at once?
Slack, the popular workplace messaging platform, closed its first trading day at $38.62 per share, 48.5% above the reference price of $26 per share set in its direct listing. Shares closed down 3.63% to $37.22 on Friday.
In a typical IPO, there’s a lockup period of between 90 to 180 days when insiders — including employees, executives, directors and in many cases investors — may not sell their shares. That’s not the case in a direct listing, however, such as Slack’s.