Uber’s former chief executive and co-founder Travis Kalanick has sold out almost 21 percent of his shares in the ride hailing behemoth last week, on account of the expiration of company’s post lock-up period.
Kalanick has released a massive 20 million shares, worth almost $547 million as per the filing with the Securities and Exchange Commission.
But that off loading does not necessarily drain him of his wealth. Despite the heavy lay off in shares, Kalanick still owns close to 75.4 million shares in Uber, whose worth, as per Friday closing, is estimated at more than $2 billion.
The lockup period of 180 days is generally manifested on most of the IPOs, mainly with the intention to reduce share volatility, which is not healthy for any company in its early public offerings. Since Uber went public on May 10 of this year, the lockup period expired only last week, after which, the internal executives and early investors of the company gained the leverage of selling their stakes.
Since the restriction on the company’s 1.7 billion outstanding shares were lifted this Wednesday, the company hit its lowest stock price at $25.58.
The shares of the company slipped by 2.2 percent at $26.44 in morning trade on Monday. Since its debut at $45 in May, the price of its shares have plummeted by 41% now.