IPO Standstill Clause Samples
An IPO Standstill clause restricts certain parties, typically shareholders or insiders, from selling or transferring their shares for a specified period following a company's initial public offering (IPO). This restriction often applies to key executives, directors, or large investors, and the lock-up period usually ranges from 90 to 180 days after the IPO date. The core purpose of this clause is to prevent a sudden influx of shares into the market, which could destabilize the stock price and undermine investor confidence during the critical early trading period.
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IPO Standstill. Energy shall not file any further amendments to the IPO Registration Statement or take any other actions intended to consummate the IPO for a period beginning on the date hereof and ending on the earliest to occur of (i) the Effective Time; (ii) the fifth business day immediately following the termination of the Merger Agreement; and (iii) the date on which the Letter of Intent is terminated by Abraxas, Energy or Limited Partners owning 10% of the Common Units. At the Effective Time, Energy shall withdraw the IPO Registration Statement.