multiple keys Nasdaq (NASDAQ: NDAQ) On Wednesday, the main trading indexes moved into positive territory. Interestingly, the same cannot be said for stock prices. Nasdaq shares lost more than 2% of their value during the trading period on news that major shareholders were offloading some of their holdings. This his 2%+ loss is, for example, Nasdaq Composite The index rose more than 1%.
large scale secondary sales
Shortly after markets closed on Tuesday, Nasdaq and Bors Dubai announced that the latter had begun an offering of Nasdaq common shares. The UAE-based exchange operator is selling just under 27 million shares of its U.S. peer, and the underwriters of the sale have a 30-day option to buy an additional 4 million or more shares. is granted.
As is customary in secondary sales, Nasdaq stressed that it will not receive any proceeds from the issuance as it is not a selling party.
Once the sale is completed, Bors Dubai will own approximately 10.8% of Nasdaq's common stock, the companies said. If the underwriter exercised the option in full, this number would drop to approximately 10.1%.
Once the offering closes, Bors Dubai intends to agree to an 18-month lock-up period for the remaining Nasdaq shares. If the ownership ratio exceeds 10%, the company will have the right to nominate candidates for the board of directors of the U.S. exchange operator.
seller remains an investor
In a joint press release, Bors Dubai said it would sell shares to “strengthen” its capital structure and increase liquidity. “We remain a long-term shareholder of Nasdaq and are invested in the company's success,” the newspaper quoted CEO Essa Kazim as saying.
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Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends NASDAQ. The Motley Fool has a disclosure policy.
Originally published by The Motley Fool
