When a company goes public, there are some procedural steps and legal requirements that must be followed. Generally, we will seek to unwind the IPOGO fund or series into which you invested and transfer a number of shares, equivalent to your pro-rata ownership in the fund or series, to a brokerage account you designate.
The shares held by the fund are generally subject to two principal types of transfer restrictions. They are subject to a standard IPO lock-up, which means that for a period of 180 days after the IPO, the shares cannot be transferred. The shares held by the fund are also considered Restricted Securities under the securities laws. Generally, this means, even post-IPO, the shares can’t be sold on the open market until they’ve been held for one year. Together with the lock-up, shares held by the fund can’t be sold on the open market until the later of (i) expiry of the lock-up or (ii) one year following purchase.
Generally, the company will use a transfer agent, who will hold custody of the pre-IPO shares. After the completion of the IPO, the shares purchased by the fund will be held with the transfer agent. Once the lock-up period expires, or one year has passed since purchase, IPOGO will either (i) transfer the shares from the account of the fund to a brokerage account you designate (after which you can do whatever you like with the shares) or (ii) sell the shares in the open market and deliver to you your portion of the proceeds.
