In a significant move, Borse Dubai Ltd., a major shareholder in NASDAQ, INC. (NASDAQ:NDAQ), has sold a substantial portion of its holdings in the company. The transaction, which took place on March 22, involved the sale of 31 million shares of NASDAQ's common stock at a price of $57.997 per share, totaling approximately $1.8 billion.
This sale comes as part of a secondary offering that also included the full exercise of the option granted to the underwriters to acquire additional shares. The details of the offering were outlined in a prospectus supplement filed with the Securities and Exchange Commission on March 21.
Following the transaction, Borse Dubai's beneficial ownership in NASDAQ stands at 58,341,545 shares. It's worth noting that the reported number of shares owned takes into account a 3-for-1 stock split completed by NASDAQ on August 26, 2022.
Borse Dubai Ltd. has direct beneficial ownership of the reported shares, while Investment Corporation of Dubai, being the majority shareholder of Borse Dubai Ltd., may also be deemed to have a beneficial ownership interest in these shares. However, both entities have disclaimed beneficial ownership of the securities except to the extent of their pecuniary interest therein.
This transaction represents a significant change in the ownership structure of NASDAQ, INC., and the market will be watching closely to see how this development affects the company's stock performance and strategic direction moving forward.
InvestingPro Insights
As Borse Dubai Ltd. alters its stake in NASDAQ, INC. (NASDAQ:NDAQ), investors may find the following InvestingPro insights particularly relevant to gauge the company's current financial standing and future prospects:
NASDAQ has demonstrated a commitment to shareholder returns, raising its dividend for 12 consecutive years. This consistent increase is a positive sign for income-focused investors, especially when considering the company's dividend yield of 1.42% as of early 2024. The dividend growth over the last twelve months as of Q1 2023 was a notable 10.0%, underscoring NASDAQ's ability to grow its payouts.
Regarding the company's valuation, NASDAQ is trading at a high earnings multiple, with a P/E ratio of 29.42 and an adjusted P/E ratio for the last twelve months as of Q1 2023 at 28.77. This could indicate that the stock is priced optimistically relative to its earnings.
The recent sale by Borse Dubai Ltd. took place near NASDAQ's 52-week high, with the price representing 98.08% of this peak. This could be seen as Borse Dubai capitalizing on the stock's strong performance, as NASDAQ has seen a large price uptick over the last six months, with a total return of 28.03%.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that can provide further insights into NASDAQ's financial health and market performance. Visit https://www.investing.com/pro/NDAQ to discover more, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 6 more tips listed on InvestingPro that could help investors make more informed decisions.
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