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Q&A Forum

What does a former employee need to do to sell their (vested) shares at the IPO?


Topic Expert
Joseph Ori
Title: CEO
Company: Paramount Capital Corporation
(CEO, Paramount Capital Corporation) |

Usually, they need to make sure the shares are registered for sale through the IPO.

Lyle Newkirk
Title: CFO
Company: Corrigo Incorporated
(CFO, Corrigo Incorporated) |

Ask your underwriters. They may not want existing shareholders selling in the IPO and may be looking to have those shareholders sign lock up agreements.

Jack Judd
Title: Retired
Company: Retired
(Retired, Retired) |

I agree with Lyle. I would say you would be lucky to be able to sell your shares at the IPO. You will almost be guaranteed to sign a lock-up agreement that will restrict your ability to sell your vested shares until 180 days after the completion of the IPO. At that time, work through your prior company to sell the shares. They will help you do the paperwork.


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