Borse Dubai Sells $1.6 Billion Stake in Nasdaq Inc.

Key Points

• Borse Dubai sold 26.97 million shares of Nasdaq Inc. at $59 per share, reducing its stake to 10.8% and raising $1.6 billion.
• The sale affected Nasdaq's stock, which dropped by 4.2% in premarket trading, with Thoma Bravo set to become the largest shareholder post-transaction.
• The offering is part of Borse Dubai's strategy to improve its capital structure, with a commitment to an 18-month lockup period for its remaining shares.

In this news

Borse Dubai, previously the largest shareholder in Nasdaq Inc., has executed a significant secondary offering of its shares, creating a notable shift in the stock exchange's ownership landscape. The offering, which consisted of approximately 26.97 million shares priced at $59 each, is expected to close on March 22, 2024, subject to customary closing conditions. This move will reduce Borse Dubai's stake in Nasdaq to 10.8%, raising around $1.6 billion in proceeds for Borse Dubai. Notably, no proceeds from this transaction will go to Nasdaq Inc. itself.

The secondary offering has had a tangible impact on Nasdaq's stock (NDAQ), which saw a 4.2% drop in premarket trading following the announcement. Investor reaction has been cautious, as the market absorbs the implications of this sizable share offloading. Underwriters have been granted a 30-day option to purchase up to an additional 4.04 million shares, which could further adjust Borse Dubai's remaining stake. Following the transaction, private equity firm Thoma Bravo is set to become the largest shareholder in Nasdaq, with a nearly 12.5% stake.

Looking ahead, Borse Dubai's reduced ownership and the new capital structure may influence Nasdaq's strategic direction and governance. The sale is part of Borse Dubai's broader strategy to enhance its capital structure and liquidity. Despite the divestment, Borse Dubai has indicated a commitment to an 18-month lockup agreement for its remaining shares, signaling a continued long-term investment in the company. The transaction underscores the dynamic nature of equity markets and the strategic maneuvers of major institutional investors.