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Published 17:02 IST, July 27th 2024

Thoma Bravo to sell $2.79 billion worth of Nasdaq shares, cutting stake by half

This move is expected to raise $2.79 billion and cut Thoma Bravo's Nasdaq stake from 14.9% to 7.4%.

Reported by: Business Desk
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Nasdaq
Nasdaq | Image: Shutterstock

Nasdaq stake sale: Nasdaq announced on Friday that Thoma Bravo, a private equity firm, will divest 41.6 million shares in a secondary public offering. This move is expected to raise approximately $2.79 billion for Thoma Bravo and will reduce its stake in Nasdaq from 14.9 per cent  to 7.4 per cent.

Nasdaq stake sale impact

The news led to a 2.8 per cent drop in Nasdaq's share price in after-hours trading. This stake sale follows Nasdaq's $10.5 billion acquisition of fintech firm Adenza from Thoma Bravo last year, which significantly increased Thoma Bravo's holdings in the exchange operator.

After the sale, Thoma Bravo will become Nasdaq's fifth-largest shareholder. Its remaining shares will be subject to a lock-up period ending May 1, 2025.

Analyst optimistic on sale

Morgan Stanley analyst Michael Cyprys noted that the sale might be a positive development, potentially alleviating the overhang on Nasdaq’s stock. Nasdaq is also set to repurchase 1.2 million shares from Thoma Bravo, with a cap of $120 million, using existing cash and commercial paper borrowings.

Previously, Borse Dubai was Nasdaq's top shareholder but will regain this position upon completion of the sale. Goldman Sachs is managing the offering.

(With Reuters Inputs)

Updated 17:02 IST, July 27th 2024