Borse Dubai Plans to Sell $1.6 Billion of Its Nasdaq Stake

On Mar 19, 2024

(Bloomberg) — Nasdaq Inc.’s biggest shareholder, Borse Dubai, is selling roughly one third of its stake — or 27 million shares — in the exchange operator at $59 each, which would raise as much as $1.6 billion.

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Borse Dubai would still own more than 10% of Nasdaq’s stock and plans to agree to an 18-month lockup of the shares, according to a statement Tuesday. Underwriters will also have a 30-day option to buy as many as 4 million additional Nasdaq shares. The offering is expected to close on March 22, Nasdaq said in a separate statement on the pricing.

Provided Borse Dubai continues to own at least 10% of Nasdaq’s outstanding stock, the company can designate a nominee to Nasdaq’s board. The offering will would make Borse Dubai Nasdaq’s second-largest shareholder.

“Today’s offering is being conducted to enhance the capital structure and liquidity within the Borse Dubai Group,” said Chief Executive Officer Essa Kazim. “We continue to be a long-term shareholder in Nasdaq and are invested in the success of the company.”

Shares of Nasdaq fell 3% to $60.60 in extended trading at 5:17 p.m. in New York. The stock had climbed 7.4% this year through the close of regular trading.

Borse Dubai took a stake in Nasdaq as part of a 2008 deal where Nasdaq acquired Sweden’s OMX AB. Borse Dubai was previously the largest shareholder in London Stock Exchange Group Plc before selling its stake in 2015. Borse Dubai and Nasdaq signed an agreement in 2017 to boost the technological infrastructure of Dubai’s stock exchanges and improve trade practices.

–With assistance from Will Davies.

(Updates with pricing of offering in first paragraph.)