(June 28) – NASDAQ has completed the first phase of its private placement, selling 40% of itself to over 2,800 investors, raising US$330 million.
Over US$260 million was raised by NASDAQ itself, with US$74 million raised by the NASD. NASDAQ sold approximately 24 million shares of newly issued common stock, and the NASD sold warrants that will be redeemable for more than 25 million shares of NASDAQ common stock over time.
Eighty-four per cent of NASD members supported this restructuring in April when it was brought to a vote. On June 26 the Securities and Exchange Commission approved changes to NASDAQ’s by-laws to implement the restructuring, limiting voting control, changing governance, and putting shareholder protections in place.
The offering was about 83% subscribed, with a majority of NASD members participating. The second phase of the private placement is expected to be completed in the fall, reducing the NASD’s equity position in NASDAQ to less than a third. NASD chairman and CEO Frank Zarb said, “We expect to complete the restructuring in the fall. At that point, NASDAQ will be independently owned by market participants, have the capital needed to fuel growth, and have the board and decision-making ability to move quickly and react to competitive challenges.”