Nasdaq Private Market will become standalone and will operate independently from the parent company.
Nasdaq Inc (NASDAQ: NDAQ) announced on Tuesday major partnerships with leading banks to spin-off its, Nasdaq Private Market, a private stock trading platform. Consequently, NDAQ stock traded higher during the day and managed to close the day trading at $180.90, 2.12% up. Meanwhile, they added approximately 0.19% during the after-hours trading session to trade around $181.94.
According to news outlet Reuters, Nasdaq partnered with Goldman Sachs and Morgan Stanley to facilitate the process. Notably, Nasdaq Private Market will become standalone and operate independently from the parent company. According to the company, the Nasdaq Private Market will receive investments from SVB Financial Group (SIVB.O), Citigroup Inc (C.N), Goldman Sachs Group Inc (GS.N), and Morgan Stanley (MS.N).
However, the holding company did not disclose the financial terms involved in the newly formed venture. Reportedly, the Nasdaq Private Market will focus on the private stock companies and their transactions. Among the notable transactions will include tender offers, auctions, and investor block trades.
There has been a notable spike in private investment interest from investors. As a result, Nasdaq opted to put its private stock market independent from its operations to grow exponentially. Furthermore, the core operating team will be retained and the company is expected to maintain its San Francisco and New York presence.
Nasdaq Private Market Spin-Off
The firm’s private market was founded back in 2014 and has been operating on a full scale. However, during the coronavirus crisis, the global economy has significantly been impacted and there has been a notable reorganization in different sectors.
During the pandemic, the private market investment reported a growth of 18% last year according to BlackRock. Investment in the private sector has seen a notable increase, particularly in the technology-based market. Moreover, the global economy is heavily invested in the technology infrastructure to rebound from the coronavirus devastations.
Notably, the company has a reported market valuation of approximately $29.07 billion with 164.09 million outstanding shares. According to market analytics provided by MarketWatch, Nasdaq stock has added approximately 38.08%, 36.28%, 13.29%, and 1.23% in the past year, seven months, three months, and one month respectively through Tuesday.
As a major technology-based company, Wall Street analysts are positive the company can keep up the trend during the rest of the year. A study by MarketWatch indicates Nasdaq stock received an Over rating from 16 ratings.
In other news, Nasdaq announced it seeks to remove existing restrictions on the direct listing plan according to a filing with the SEC.