Afya Could Slide Further When IPO Lockup Expires

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About: Afya Limited (AFYA)
by: Don Dion
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Don Dion
Long/short equity, special situations, momentum, event-driven
Summary

When the IPO lockup period for AFYA ends on January 15th, more than 13 million currently restricted shares will be eligible for trading.

With just 13.7 million shares trading pursuant to the IPO, any significant sales of currently-restricted stock could flood the secondary market and cause a short-term downturn in share price.

Aggressive, risk-tolerant investors should consider shorting shares of AFYA ahead of the IPO lockup expiration.

When the 180-day lockup period for Afya Ltd. (AFYA) ends on January 15, 2020, pre-IPO shareholders and company insiders will be able to sell more than 13 million currently-restricted shares in the