On Wednesday, Nasdaq Inc.’s common stock experienced a significant downturn, declining by 2.4% in response to a strategic move initiated by its parent company, the Nasdaq stock exchange. This move involved the announcement of a stock offering in collaboration with one of its major shareholders, Borse Dubai. The offering, comprising 26.97 million shares priced at $59 per share, aimed to raise approximately $1.6 billion in capital.
The news of the stock offering sparked considerable interest in Nasdaq’s stock, denoted by the ticker symbol NDAQ, evident in the active premarket trading activity where around 115,000 shares were exchanged. This heightened trading activity underscored Nasdaq’s status as one of the more actively traded equities in the market. Despite the offering, Borse Dubai opted to retain ownership of 62.4 million shares, equivalent to roughly 10.8% of Nasdaq’s total outstanding shares. Consequently, upon the completion of the offering, Borse Dubai was poised to emerge as Nasdaq’s second-largest shareholder.
Essa Kazim, the Group Chief Executive of Borse Dubai, expressed optimism regarding the offering’s potential to enhance the capital structure and liquidity of the Middle East stock exchange. The strategic significance of the offering was further emphasized by the involvement of prominent financial institutions, with Morgan Stanley and Goldman Sachs & Co. LLC appointed as joint lead book-running managers, and JPMorgan serving as Nasdaq’s capital markets adviser.
As part of the agreement, Borse Dubai committed to refraining from selling any additional shares in Nasdaq for a period of 18 months, demonstrating its long-term commitment to the investment. This commitment was particularly noteworthy considering Borse Dubai’s sustained shareholder position in Nasdaq for an impressive 16-year duration.
Despite the market downturn observed on Wednesday, Nasdaq’s stock performance in 2024 showcased a modest increase of 4.8%. This contrasted with the S&P 500’s gain of 8.6% over the same period, highlighting Nasdaq’s resilience and the unique dynamics influencing its performance amidst evolving market conditions.