Tomorrow marks an important date for shareholders of data analytics business Veda Group Ltd (ASX: VED). Not only will the group announce their first set of full-year results since listing on the Australian Securities Exchange, but more than 540 million shares will also be released from voluntary escrow. This could see up to $1.1 billion worth of shares hit the market.
When a company lists on the ASX, major shareholders are normally required to wait a certain amount of time before they are able to sell their shares. Veda recently announced that a total of 544,649,676 shares will become eligible for trade as of tomorrow, most of which belong to private equity firm Pacific Equity Partners (PEP), which held 63.5% of Veda Group as at the IPO.
While there have not yet been any reports suggesting PEP's intentions ahead of tomorrow's full-year results release, I would be surprised to see them sell down their stake given the incredible track record that Veda Group boasts, as well its strong growth potential over the coming years.
Significant amounts of shares of Nine Entertainment Co Holdings Ltd (ASX: NEC), Pact Group Holdings Ltd (ASX: PGH) and Cover-More Group Ltd (ASX: CVO) will also be released from escrow by the end of this week.
Another high quality ASX stock – FREE!
I'm a happy owner of Veda Group shares and don't expect they will be sold off en masse tomorrow as shares are released from voluntary escrow. When I purchased them, they were trading at $2.09 apiece and while that doesn't represent a "bargain" as such, it was a price I was more than willing to pay for such a high quality company with strong growth prospects.
