IPO Lockup Expiration and Share Price Effect in Malaysian Market
Shamsul Bahrain Mohamed-Arshad, Kamarun Nisham Taufil-Mohd, Nurwati Ashikkin Ahmad-Zaluki

Abstract
This paper examines the effect of IPO lockup expiration on share prices for the period of 21 days surrounding the event date. The sample consists of 292 IPOs listed on Bursa Malaysia between May 2003 and December 2012.Lockup in Malaysia is mandatory as opposed to voluntary where it is negotiated between firms and underwriters. Using the market model event study method, the result shows a significant negative abnormal return at the expiration of the lockup period. Thus, the study provides evidence that contradicts the semi-strong form of the Efficient Market Hypothesis (EMH). According to EMH, the expiration of the lockup period which is public knowledge should not be accompanied with a significant abnormal return. In addition, there is insignificant difference in cumulative abnormal returns at the expiration of lockup period between the Main Market and the ACE Market for the first stage lockup expiry.

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