HeadHunter Could Be Impacted By Lockup Expiration

Early Market Performance

The underwriters priced the IPO at $13.50 per share. The stock closed on the first day of trading at $15.75 for an increase of 16.7%. Shares dipped to $15.33 on June 11. Then they began to climb to reach a high of $21 on September 16. HHR currently has a return from IPO of 29.3%.

Conclusion

When the HHR IPO lockup expires on November 5th, pre-IPO shareholders and company insiders will be able to sell more than 31 million shares of currently-restricted stock. This group of pre-IPO shareholders and company insiders includes numerous executives and board members along with VC firms.

(Click on image to enlarge)

(Source: S-1/A)

Sales of currently-restricted shares could flood the secondary market when the lockup expires and cause a sharp, short-term downturn in share price. Aggressive, risk-tolerant investors should consider shorting shares of HHR ahead of the November 5th IPO expiration. Interested investors should cover their positions during the November 6th and November 7th trading sessions.

Interested in learning more about IPO Lockup investment opportunities? Check out our subscription service, IPO Insights. We update subscribers with actionable investment opportunities that follow the debut of select companies on U.S. exchanges.

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Disclosure: I am/we are short HHR.

Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any ...

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