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Red Hat: More or Less?

Red Hat's secondary means that fewer shares are coming off lockup in the next few weeks. But there's still a lot of stock out there.
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Yesterday

Goldman Sachs

priced a 4 million share combination offering of

Red Hat

TST Recommends

(RHAT)

at $95 per share. These shares began trading this morning. The terms of this offering, which was not effective when I wrote about Red Hat on

Tuesday and

Wednesday included an extended lockup period on a significant number of insider shares. The recent acquisition by Red Hat of

Cygnus

worked to extend the restrictions on some insider shares as well.

Red Hat: Join the discussion on our

message boards.

According to people at Goldman, here are the approximate numbers of shares becoming eligible for sale along with the dates that the restrictions will be lifted. Print it and tape it to your monitor. This info may be of particular use to if you plan to put on or close out positions in Red Hat in the near future.

  • Feb. 7 - 5.98 million shares
  • Feb. 25 - 2 million shares
  • Feb. 26 - 1 million shares
  • March 8 - 1 million shares
  • March 26 - 1 million shares
  • Week of March 27 (approx.) - 42.65 million shares
  • April 1 - 1 million shares
  • May 3 - 46 million shares (approx.)

Ben Holmes is the founder of ipoPros.com, a Boulder, Colo.-based research boutique (now a wholly-owned subsidiary of TheStreet.com) specializing in the analysis of equity syndicate offerings. This column is not meant as investment advice; it is instead meant to provide insight into the methods of new and secondary offerings. Neither Holmes nor his firm has entered indications of interest in any of the companies discussed in this column. Holmes' This Week in IPOs column appears Sundays, This Week's Secondaries appears Tuesdays, Upcoming Lockup Expirations appears Wednesdays and The Quiet Period appears on Fridays. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Holmes appreciates your feedback at

bholmes@thestreet.com.