Hi everyone
I have a question that I can't answer and I wanted to get views of those with more experience.
Context:
- A VC firm owns 50% of a public company that just floated on the ASX. There is an escrow for the VC of 24 months after IPO.
- The VC firm is the biggest shareholders, the next biggest shareholders is the CEO with 10% of ownership.
- The VC firm made it very clear that they will exit their position after the escrow period.
My question are:
- Because the VC must take profit, does that mean that the share price will automatically get hammered after the 24 months escrow period?
- What is the point of investing when the stock price is somehow "programmed"?
Your views are welcome
