IDEAS home Printed from
   My bibliography  Save this article

Lockup clauses in Italian IPOs


  • Dmitri Boreiko
  • Stefano Lombardo


Virtually all Initial Public Offering (IPO) prospectuses feature lockup provisions that limit pre-IPO shareholders’ share sale for some period of time after negotiations start. The aim of this article is to analyse voluntary lockups in Italy. We show that lockups are considerably longer and heterogeneous compared to the US or European evidences, and their duration and size serve primarily as a commitment device to alleviate the moral hazard problem faced by incumbent shareholders. We document considerable differences in lockup clauses among main shareholder classes, with venture capitalists and outside investors having considerably lower percentages of owned shares restricted for sale and with significantly shorter lockup durations. We also show that abnormal returns around the lockup expiration dates are associated solely with Venture-Capital (VC)-backed IPOs.

Suggested Citation

  • Dmitri Boreiko & Stefano Lombardo, 2013. "Lockup clauses in Italian IPOs," Applied Financial Economics, Taylor & Francis Journals, vol. 23(3), pages 221-232, February.
  • Handle: RePEc:taf:apfiec:v:23:y:2013:i:3:p:221-232
    DOI: 10.1080/09603107.2012.714067

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:23:y:2013:i:3:p:221-232. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.