Ted Hollifield was quoted in an article on Bloomberg discussing how the underwriters in the Facebook IPO agreed to a multi-step, shorter-duration lockup than is typical in most IPOs.
According to the article, the shorter-than-typical lockup permitted early outside investors in Facebook to sell their shares almost 50 percent sooner than in any of the other 40 biggest U.S. technology IPOs since then end of 2010.
“With the benefit of hindsight, you could say that the underwriters probably regret agreeing to an early release of the shares,” Hollifield said.
"The stock still seems to be searching for an actual trading range and you would ideally like to see that take place before there’s additional selling pressure.”