Lock-Up Period

A Lock-Up Period is a restriction placed on shareholders, typically after an initial public offering (IPO), preventing them from selling their shares for a certain period, typically ranging from 90 to 180 days. The lock-up period is designed to prevent market volatility caused by a large number of shares being sold immediately after the IPO.

For investors and businesses in the UAE, the lock-up period is a critical consideration in IPO planning. It ensures market stability, encourages long-term investor confidence, and allows the company time to establish a track record on the public markets before shares flood the market.