RT Journal Article
SR Electronic
T1 Canadian IPO Share Releases
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 73
OP 89
DO 10.3905/jpe.2008.702792
VO 11
IS 2
A1 Lawrence Kryzanowski
A1 Siyi Liang
YR 2008
UL https://pm-research.com/content/11/2/73.abstract
AB This article provides the first examination of the design, impact and market behavior of two types of lockups for Canadian IPOs listed on the TSX during the 1997–2005 period. Lower IPO underpricing is not related with the existence of lockup information in an issuer's prospectus. IPO firms with dual-class share structures have higher lockup proportions and longer escrow lockup periods, and larger firms have higher lockup escrow proportions. Only high-tech firms exhibit significant negative abnormal returns around unlock days. Lower abnormal trading volumes and relative spreads occur after unlock days only for the IPOs with escrow lockups with stipulated nonzero lockup lengths.TOPICS: Private equity, security analysis and valuation, developed, statistical methods