Snap shares tumble as insiders are unshackled from post-IPO lock-up

A queue had formed at the Snap Inc (NYSE:SNAP) exit door in Monday’s pre-market trading, as the first of the ‘insiders’ became unshackled from lock-ups.

The first of the early investors in Snap are able to sell out from today, with Lightspeed Venture Partners now allowed to dispose of up to 400mln shares following the initial public offering which valued the company at around US$30bn.

More shareholdings can be unlocked in the coming weeks – notably shares held by boss van Spiegel and Snap co-founder Robert Murphy which are among the holders of nearly 800mln that will no longer be subject to lock ups from August 14.

Like a fleeting video clip shareholdings were vanishing, with Snap down 41 cents or 2.97% ahead of Monday’s open in New York.

Regulatory statements will take time to come into the public domain, so it will remain to be seen whether or not Lightspeed are exiting, nonetheless, the diary day was definitely reason enough for short sellers who have pressured the stock plenty in the weeks since the IPO.

Snap is down some 43%, US$10.67, since the social media firm floated back in March.

Story by ProactiveInvestors