Borse Dubai to Offload $1.6 Billion in Nasdaq Shares

Borse Dubai Ltd., currently the biggest shareholder of Nasdaq Inc., is set to decrease its ownership through a secondary share offering that aims to mobilize approximately $1.6 billion. In a move that will dilute its influence, Borse Dubai will sell off 26.96 million shares at a price of $59 each. This sale will cut its hold on the company to an estimated 10.8%, as revealed in two public statements on the exchange's official website.

Share Sale Details

With the upcoming transaction, underwriters are presented with the option to acquire an additional 4,043,478 Nasdaq shares, exercisable within a 30-day span. The anticipated closure date of this offering is March 22. Furthermore, Borse Dubai has agreed to an 18-month lock-up period for its subsequent Nasdaq shareholdings, under the condition that its ownership stays at or above 10%. As long as this threshold is met, Borse Dubai retains the right to appoint a nominee to Nasdaq’s board.

Shift in Shareholder Hierarchy

Upon finalizing the deal, Borse Dubai will step down to the position of the second-largest shareholder, while the leading investment firm Thoma Bravo is expected to ascend as the top shareholder with a 12.5% stake, according to information obtained from Reuters.

Essa Kazim, the Chairman and CEO of Borse Dubai, explained that the offering is intended to improve the capital structure and enhance liquidity for the group. He emphasized Borse Dubai's longstanding partnership with Nasdaq, spanning 16 years, noting Nasdaq as a crucial technological and branding ally for their exchanges, and voiced confidence in Nasdaq's strategic future.

Ownership stakes in Borse Dubai are divided amongst the Investment Corporation of Dubai with 60%, Dubai Group LLC holding 20%, and DIFC Investments LLC also owning 20%. In the context of the offering, notable institutions such as Morgan Stanley and Goldman Sachs & Co. LLC are taking charge as joint lead book-running managers. J.P. Morgan serves as a capital markets advisor for Nasdaq.

BorseDubai, Nasdaq, Shares