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Meituan's Six-Month Lockup Period Expires March 20

March 20, 2019 5:43 pm

On March 20, Meituan Dianping (3690.HK), the leading food delivery platform in China, will welcome the end of it six-month stock trading lockup. The shareholders will have the opportunity to sell large blocks of currently-restricted shares. The total number of restricted shares is close to 2.7 billion.

Significant sales of restricted stock could flood the secondary market for Meituan and cause a sharp, short-term dip in share price. But some market analysts still hold a positive outlook on the long-term development of Meituan.

Xiaomi (1810.HK) and Meituan were listed on the Hong Kong Stock Exchange (HKSE) last year. The lockup period for Xiaomi's three billion restricted shares ended on January 9. The next day, Xiaomi's share price was down to 9.44 HKD, the lowest price since its listing.