Trivago Set To Travel South

A restriction that prevents major pre-IPO shareholders from selling their shares right after an IPO, the lock-up period generally lasts 180 days for companies following their initial public offerings. The 180-day lock-up period for Trivago N.V. (Nasdaq: TRVG) is scheduled to expire on June 14, 2017.

After that date, the pre-IPO shareholders will be able to sell their 374M restricted shares. This could potentially flood the market, causing the stock price to drop and presenting an opportunity for investors to sell or short their shares in advance of the event.

(Click on image to enlarge)

(Source: SEC Filings)

Company overview

Trivago is an international search platform that consumers can use to compare hotels by location to find the best hotel at the lowest price. For the year that ended on Sept. 30, 2016, the company reported that it had 487 million searches and offered access to 1.3 million hotels in 190 countries. Users do not purchase the hotels on the website. Instead, they are referred to other websites in order to complete their transactions through referrals. The company is headquartered in Dusseldorf, Germany.

Management overview

The chief executive officer of Trivago, Rolf Schrömgens began serving as a managing director of the company in 2016 and has served in that role for Trivago GmbH since 2005. Previously, Schrömgens founded ciao.com and served as its vice president from 1999 to 2001. He holds a diploma in management from Leipzig Graduate School of Management.

Axel Hefer is the chief financial officer and was appointed in 2016. He has also served as a managing director for Trivago GmbH since 2016. Previously, he served as the CFO and chief operating officer of Home24 AG and as a managing director of One Equity Partners. He holds a diploma in management from Leipzig Graduate School of Management and a Master of Business Administration from INSEAD.

Recent IPO performance and financial highlights

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Disclosure: I am/we are short TRVG.

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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