Stock of Nasdaq Drops After Stock Exchange Parent Offers $1.6 Billion

On Wednesday, Nasdaq Inc.'s common stock experienced a decline of 2.4% following the announcement that its parent company, the Nasdaq stock exchange, had priced a stock offering from one of its major shareholders, Borse Dubai.

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This offering comprised 26.97 million shares, set at a price of $59 per share, resulting in a total raise of approximately $1.6 billion. Nasdaq's stock, identified by the ticker symbol NDAQ, saw premarket trading activity with around 115,000 shares exchanging hands, positioning it as one of the more actively traded equities.

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Despite the offering, Borse Dubai will retain ownership of 62.4 million shares, representing approximately 10.8% of Nasdaq's total outstanding shares. Following the completion of the offering, Borse Dubai will stand as Nasdaq's second-largest shareholder.

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Essa Kazim, the Group Chief Executive of Borse Dubai, expressed that the offering is expected to bolster the capital structure and liquidity of the Middle East stock exchange.

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Morgan Stanley and Goldman Sachs & Co. LLC have been appointed as joint lead book-running managers for the stock offering, while JPMorgan serves as the capital markets adviser to Nasdaq.

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Furthermore, as part of the agreement, Borse Dubai has committed not to divest any additional shares in Nasdaq for a duration of 18 months. Notably, Borse Dubai has maintained its shareholder status in Nasdaq for a period spanning 16 years.

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Considering the market movements witnessed on Wednesday, Nasdaq's stock performance throughout 2024 has exhibited a 4.8% increase, in contrast to the S&P 500's 8.6% gain over the same period.

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