Why Nasdaq Shares Are Declining Premarket Wednesday
Portfolio Pulse from Lekha Gupta
Nasdaq, Inc. (NDAQ) shares are trading lower in premarket following Borse Dubai's secondary offering of 26.956 million common shares at $59 per share. Borse Dubai also granted underwriters a 30-day option for up to 4.04 million additional shares. Nasdaq will not receive any proceeds from this offering. The offering is expected to close on March 22, 2024, with Borse Dubai projected to hold about 10.8% of Nasdaq's outstanding shares post-offering, or 10.1% if the underwriters' option is fully exercised. NDAQ shares are down 3.86% at $60.05 in premarket trading.
March 20, 2024 | 1:16 pm
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NEGATIVE IMPACT
Nasdaq, Inc. (NDAQ) shares are trading lower due to Borse Dubai's secondary offering of 26.956 million shares at $59 each, with an additional option for 4.04 million shares. The offering is expected to close on March 22, 2024, affecting Nasdaq's shareholding structure but not its proceeds.
The decline in NDAQ shares is directly related to the secondary offering by Borse Dubai, which increases the supply of shares in the market, potentially diluting the value for existing shareholders. The fact that Nasdaq will not receive any proceeds from the offering further contributes to the negative sentiment. The short-term impact is negative due to the immediate market reaction, as evidenced by the premarket price drop.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100