Borse Dubai will sell nearly 27 million shares in the US stock exchange operator Nasdaq, losing its spot as the company’s largest shareholder.
The Dubai sovereign wealth fund plans to reduce its stake in the company from 15.5% to 15.5%. At a price of between $58 to $60 per share, the decision would see Borse Dubai raising as much as $1.6 billion.
As a result of the sale, Borse Dubai would become Nasdaq’s second-largest shareholder after US private equity firm Thoma Bravo which holds a 12.5% stake in the US exchange.
Nasdaq has confirmed it agreed to an 18-month lockup of its approximately 62 million remaining shares.
“Today’s offering is being conducted to enhance the capital structure and liquidity within the Borse Dubai Group,” said Borse Dubai CEO Essa Kazim. “We continue to be a long-term shareholder in Nasdaq and are invested in the success of the company.”
Borse Dubai first acquired a stake in Nasdaq in 2008, as part of a deal in which the US stock exchange operator 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 is and continues to be a valued shareholder of Nasdaq underpinned by a shared vision for our future,” said Sarah Youngwood, Chief Financial Officer, Nasdaq. “Borse Dubai’s insights and contributions have and will continue to shape our path ahead.”
Borse Dubai expects to grant the underwriters a 30-day option to purchase up to 4 million additional shares of Nasdaq’s common stock.
Nasdaq’s shares closed the regular session up 3.6% at $62.46. They fell more than 2% in extended trading on Tuesday following the announcement of the planned share sale.
Morgan Stanley and Goldman Sachs & Co. LLC are acting as joint lead book-running managers for the offering.
