As Alibaba Group Holding Ltd BABA 0.33% approaches the one-year anniversary of its record-breaking NYSE IPO on September 19, the stock’s first-day closing price of $93.89 and its all-time high of $120.00 seem like very distant memories for Alibaba shareholders.

Unfortunately, with the stock sitting near all-time lows at around $62 per share and a massive 1.6 billion-share lockup expiration coming on September 20, it seems as though Alibaba shareholders will not have much of an anniversary celebration this year.

The Lockup Expiration

The September 20 lockup expiration means that nearly two-thirds of Alibaba’s outstanding shares will soon be free to be sold for the first time, an event that could potentially flood the market with Alibaba shares.

This will not be the first Alibaba lockup expiration. Back on March 18, a much smaller lockup of about 429 million shares expired. In the month that followed, Alibaba’s share price declined by 3.1 percent.

The Company’s Take

Of course, the vast majority of the unlocking shares are held…

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