"In an email to current and former staff on Wednesday, the company said it is converting vested restricted stock units, or RSUs, into tradable shares, which employees can begin selling a few days after the $15 billion IPO. The email, seen by Business Insider, said that the converted shares are "exempt from the six-month post-IPO lockup and can be traded during this time.""
"Exemptions like this are rare in public offerings, but not unheard of. When Airbnb went public in 2020, it gave employees the chance to sell up to 15% of their holdings in the first week of trading. Usually, IPOs come with lockup periods that bar insiders from selling shares for about six months. The measure is intended to keep insiders and early investors from unloading shares right as the company opens up to public buyers."
Klarna is converting vested restricted stock units (RSUs) into tradable shares and permitting current and former employees to sell them a few days after the $15 billion IPO. The converted shares are exempt from the six-month post-IPO lockup and may be traded during the initial IPO window through September 30. After September 30, employee trading will be limited to quarterly windows. The conversion rate is roughly four RSUs for one public share. The company did not specify in SEC filings what portion of ordinary shares will be sold by employees. RSU awards remain a key element of tech compensation.
Read at Business Insider
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