Borse Dubai, the largest shareholder in Nasdaq Inc. (NASDAQ:NDAQ), is offloading nearly 27 million shares in the financial exchange at $59 per share. Consequently, NDAQ shares are under pressure in the early session today.
The transaction is expected to raise nearly $1.6 billion for Borse Dubai. However, the secondary offering will lower Borse Dubai’s stake in NDAQ by nearly a third to 10.8%. Additionally, underwriters have been given a 30-day option to acquire up to 4 million additional shares of NDAQ.
The offer is anticipated to close on March 22. Furthermore, NDAQ is not receiving any proceeds from this transaction. Following the transaction closure, private equity major Thoma Bravo is set to become the largest shareholder in Nasdaq with a nearly 12.5% stake.
Is NDAQ a Buy, Sell, or a Hold?
Today’s price decline comes after a nearly 24.5% jump in Nasdaq’s share price over the past six months. Overall, the Street has a Moderate Buy consensus rating on Nasdaq alongside an average price target of $62.50.
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