From yesterday's press release: Baidu.com, Inc. (ticker: BIDU), the leading Chinese language Internet search provider, announced today that Goldman Sachs (Asia) L.L.C. and Credit Suisse First Boston LLC, co-lead underwriters for Baidu's IPO in August 2005, have decided to release a total of up to three million outstanding ordinary shares from lock-up restrictions, effective from December 19, 2005. This early partial release will allow each shareholder who is subject to lock-up restrictions to sell, transfer or otherwise dispose of part of its shares on a pro rata basis as determined based on the number of shares held by such shareholder and the total number of shares held by all the shareholders subject to lock-up restrictions as of December 2, 2005. With respect to the shareholders who are currently subject to the standard 180-day lock-up restrictions, all of their remaining shares will be released upon expiration of the 180-day lock-up period. In addition, the co-lead underwriters have agreed to release from the lock-up restrictions 25% of the shares held by each shareholder who is currently subject to the extended lock-up restrictions beyond the standard 180-day period, beginning on the 180th day after August 4, 2005, and to release all the remaining shares held by such shareholder beginning on the 360th day after August 4, 2005.
Comment: The original lock-up restrictions? Take a look:
From Baidu's prospectus dated August 4, 2005:
We have agreed with the underwriters on a lock-up of ADSs or ordinary shares or securities convertible into or exchangeable or exercisable for any ADSs or ordinary shares for a period of 180 days after the date of this prospectus. In addition, our executive officers, directors and certain existing shareholders, who collectively hold approximately 94.8% of our outstanding shares immediately before this offering, have also agreed with the underwriters to a lock-up of ADSs or ordinary shares or securities convertible into or exchangeable or exercisable for any ADSs or ordinary shares for a period of 180 days after the date of this prospectus. Other than Google Inc., which holds approximately 2.6% of our total outstanding shares immediately before this offering, shareholders with ownership of 2% or more of our total outstanding ordinary shares on a fully-diluted basis immediately after the closing of this offering have also agreed with the underwriters to be subject to the lock-up restrictions for an additional 540-day period commencing on the date of the expiration of the 180-day lock-up period. Commencing on the date of the expiration of the 180-day lock-up period and at the beginning of each 180-day period thereafter until the expiration of the 540-day extended lock-up period, 25% of the shares held immediately after the completion of this offering of such shareholder will be released from the lock-up restrictions. See “Shares Eligible for Future Sale