November 6, 2017, concludes the 180-day lockup period on Five Point Holdings LLC (Pending: FPH).
When the lockup period ends for FPH, the company’s numerous pre-IPO shareholders, directors, and executives will finally be able to sell their more than 37 million previously-restricted shares. Just 21 million shares are currently trading pursuant to the offering.
(Source: S-11/A)
We believe that there’s a high probability that they will sell at least a portion of these previously restricted shares – FPH has a notably high number of restricted shareholders – nine corporate entities and venture capital firms and seventeen individuals. The potential for a sudden increase in stock available – and shareholders looking to sell it – may cause a sharp, short-term decrease in the price of Five Point Holdings shares.
(Source: S-11/A)
Business Overview: Largest Owner and Developer of Land in Coastal California
Five Point Holdings is the largest owner and developer of master-planned, mixed-use communities in western counties in California. It currently has three existing communities: Newhall Ranch in Los Angeles, San Francisco Shipyard, and Candlestick Park in San Francisco, and Great Park Neighborhood in Orange County.
Its plans include construction of approximately 40,000 homes and 21 million square feet of commercial space and the accompanying infrastructure. Five Point Holdings has the zoning approvals for the general plan. The three areas represent some of the largest growth in California with the least amount of housing and space available. The communities will include commercial, educational, retail, and recreational elements in addition to parks, open spaces, and civic areas. Construction will take place over a 10-year period. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was founded in 2009 and is based in Aliso Viejo, California.
