One of the things we do as we put the monthly Candygram together is to highlight the dates that new IPO listings will be getting banking coverage and also when lockups are scheduled to expire.
If you are actively investing in a name it’s important to know these dates and be alert to potential share price changes around these dates.
For example research coverage (which typically follows 40 days after pricing) can boost share prices. This may change if the JOBS act prods banks to initiate coverage sooner. If that happens all bets are off.
Conversely the expiration of lockup restrictions tends to pressure share prices. Often this is simply supply and demand at work. However lockups are less predictable now because often the lead investment bank can make exceptions to allow for early sales and sometimes lockups get extended due to blackout periods. Secondary offerings also effect the date and shares available. The actual date can be hard to nail down.
Going forward we will send out pending coverage alerts on all the IPO names we are following two days before it’s scheduled. On lockups we will send an alert one week before and also on the expected date.
To receive these alerts please subscribe to our IPO_Candy twitter feed. You can set this up to send via SMS if you want to be really in the loop.
We will be publishing the full Candygram tomorrow, May 2nd so keep an eye out for that.