In a strategic move, Borse Dubai, the holding company of Dubai Financial Market, announced its intention to sell nearly a third of its stake in Nasdaq, the New York-based exchange operator, for a substantial sum of $1.59 billion.
The sale comprises approximately 27 million shares of Nasdaq at a price of $59 per share, through a secondary offering. Additionally, underwriters have been granted a 30-day option to purchase up to four million additional Nasdaq shares. Borse Dubai revealed this significant development through a filing with the stock exchange on Tuesday.
Upon completion of the secondary offering, Borse Dubai is expected to retain approximately 10.8% of Nasdaq’s shares, translating to about 62.4 million shares. However, should the underwriters exercise their option to purchase additional shares in full, Borse Dubai’s shareholding in Nasdaq will decrease to 10.1%, comprising roughly 58.3 million shares.
Essa Kazim, Chairman and Chief Executive of Borse Dubai, emphasized that the offering aims to enhance the capital structure and liquidity within the Borse Dubai Group. He reaffirmed the company’s commitment as a long-term shareholder in Nasdaq, underscoring their investment in the success of the exchange operator.
Morgan Stanley and Goldman Sachs are acting as joint lead book-running managers for the offering, with JP Morgan serving as the capital markets adviser to Nasdaq. Borse Dubai’s investment in Nasdaq dates back to 2008, as part of a larger deal where Nasdaq acquired Borse Dubai’s shareholding in Sweden’s OMX.
Over the years, Borse Dubai has established a multifaceted relationship with Nasdaq, not only as a shareholder but also as a technology and brand partner for its exchange group. This strategic collaboration underscores Nasdaq’s significance in bolstering the technological infrastructure and post-trade practices of the Dubai Financial Market and Nasdaq Dubai.
Founded in 2007 to consolidate two stock exchanges and manage investments in other exchanges, Borse Dubai continues to explore opportunities in global capital markets, leveraging technology, liquidity, regulation, and expertise to drive growth and innovation.
