In a significant move, Borse Dubai Ltd. has announced intentions to divest a portion of its stake in Nasdaq Inc. through a secondary share offering, aiming to raise approximately $1.6 billion.
The plan entails selling 26.96 million shares of Nasdaq’s common stock at $59 per share, which would reduce Borse Dubai’s stake to around 10.8%. Additionally, underwriters will have a 30-day option to purchase up to 4,043,478 additional shares of Nasdaq’s common stock.
Borse Dubai has committed to an 18-month lock-up of its remaining shares in Nasdaq, ensuring stability and confidence in its investment. This commitment also grants Borse Dubai the opportunity to designate a nominee to Nasdaq’s board, provided it maintains a minimum 10% ownership stake in Nasdaq’s outstanding stock.
Post-transaction, Borse Dubai will retain its position as Nasdaq’s second-largest shareholder, with US private equity firm Thoma Bravo poised to become the largest shareholder, holding a 12.5% stake.
Essa Kazim, Chairman and CEO of Borse Dubai, emphasized the strategic nature of the offering, aimed at enhancing the capital structure and liquidity within the Borse Dubai Group. Kazim highlighted the longstanding partnership between Borse Dubai and Nasdaq, spanning over 16 years.
Borse Dubai’s ownership structure comprises 60% ownership by the Investment Corporation of Dubai, with Dubai Group LLC and DIFC Investments LLC holding 20% stakes each.
Morgan Stanley and Goldman Sachs & Co. LLC have been appointed as joint lead book-running managers for the offering, with J.P. Morgan serving as a capital markets advisor to Nasdaq.
As Borse Dubai executes this strategic move, stakeholders await the implications of this significant stake sale on the global financial landscape.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
20th March, 2024
