Nasdaq shares dip over 2% as Borse Dubai plans secondary offering

Borse Dubai share sale: Nasdaq's stock experienced a decline exceeding 2 per cent during after-hours trading on Tuesday, prompted by news of an upcoming secondary share offering by Borse Dubai, a move set to reduce its minority holding in the US stock exchange.

Borse Dubai, previously Nasdaq's largest single shareholder, disclosed its intention to diminish its ownership stake from 15.5 per cent to 10.8 per cent, marking a significant shift in its investment strategy.

According to a statement released post-market closure on Tuesday, Borse Dubai is poised to divest approximately 26.96 million shares of the exchange operator through the secondary offering.

Despite this development, Nasdaq's shares had a positive trajectory during the regular trading session, closing up 3.6 per cent at $62.46.

In a parallel announcement, Nasdaq unveiled the pricing details of the offering by Borse Dubai, set at $59 per share. This move is expected to yield around $1.6 billion for Borse Dubai from the share sale.

The statement further outlined Borse Dubai's plan to subject its remaining shares under an 18-month lock-up period following the offering. Additionally, it retains the right to nominate a candidate to Nasdaq's board of directors, provided it maintains at least a 10 per cent ownership stake.

Upon completion of the offering, Borse Dubai will descend to the position of the second-largest shareholder in Nasdaq. US private equity firm Thoma Bravo is poised to ascend as Nasdaq's top shareholder, holding a 12.5 per cent stake in the exchange, equivalent to approximately 71.6 million shares.

(With Reuters inputs.)