Freshworks Announces Partial Early Lock-Up Release on November 4, 2021

Rhea-AI Summary

Freshworks Inc. (NASDAQ: FRSH) announced a partial early lock-up release for its Class A common stock, allowing up to 58.2 million shares to be sold starting November 4, 2021. This release follows the IPO's conditions where early selling of shares is based on the stock's performance relative to the IPO price of $36.00.

As of October 27, 2021, conditions for releasing 20% of the shares were met. The remaining shares will still be under the lock-up agreements.

Positive

• Release of up to 58.2 million shares increases market liquidity.
• Conditions for early release met, indicating positive stock performance.

Negative

• None.

SAN MATEO, Calif., Oct. 29, 2021 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH), a leading software company empowering businesses to delight their customers and employees, today announced, as disclosed in the final prospectus dated September 21, 2021 relating to Freshworks’ initial public offering, a partial early lock-up release with respect to Freshworks’ shares of Class A common stock, par value $0.00001 per share (the “shares”), pursuant to the terms of certain lock-up agreements (“lock-up agreements”) entered into by Freshworks’ directors and officers and certain holders of Freshworks’ common stock with the underwriters of Freshworks’ initial public offering.

Pursuant to the terms of the lock-up agreements, the restricted period will end with respect to either 20%, 30% or 40% of the shares held by all holders of common stock and securities exercisable for or convertible into common stock if the last reported closing price of the Class A common stock on The Nasdaq Stock Market LLC is equal to or greater than 110%, 125% or 150%, respectively, of the IPO price of $36.00 per share for any 10 out of 15 consecutive trading days ending on the one trading day prior to the second trading day after Freshworks’ public announcement of its earnings for the fiscal quarter ended September 30, 2021, including the last day of such 15 trading day period.

The underwriters have agreed that the conditions for early release of 20% of the shares have been deemed satisfied as of October 27, 2021. Accordingly, Freshworks estimates that up to 58.2 million shares will become eligible for sale in the public market at the open of trading on November 4, 2021.

The restricted period will continue to apply with respect to all remaining shares subject to the lock-up agreements.

About Freshworks

Freshworks makes it fast and easy for businesses to delight their customers and employees. We do this by taking a fresh approach to building and delivering software that is affordable, quick to implement, and designed for the end user. Headquartered in San Mateo, California, Freshworks has a dedicated team operating from 13 global offices to serve 50,000+ customers including Bridgestone, Chargebee, DeliveryHero, ITV, Klarna, Multichoice, OfficeMax, TaylorMade and Vice Media. For more information visit www.freshworks.com.

© 2021 Freshworks Inc. All rights reserved. Freshworks and its associated logos are trademarks or registered trademarks of Freshworks Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

Investor Contact:
Joon Huh
ir@freshworks.com
650-988-5699

Media Contact:
Jayne Gonzalez
pr@freshworks.com
408-348-1087

FAQ

What date will Freshworks' shares be available for trading?

Freshworks' shares will be available for trading starting November 4, 2021.

How many shares will be released from the lock-up for Freshworks?

Up to 58.2 million shares will be released from the lock-up.

What is the IPO price per share for Freshworks?

The IPO price per share for Freshworks was $36.00.

What conditions must be met for the release of Freshworks’ shares?

Conditions are based on the stock price reaching 110%, 125%, or 150% of the IPO price for specified trading days.