Nasdaq divides listing business into regions to capture demand

The exchange business will have an east coast region, a west coast segment and a Texas, southern US and Latin America division, according to a memo.

Nasdaq is re-organising its listing business into three regional divisions to be led by senior executives amid efforts to capture demand for initial public offerings at a local level.

The exchange business will have an east coast region, a west coast segment and a Texas, southern US and Latin America division, according to a memo seen by Bloomberg and confirmed by a spokesperson.

Rachel Racz, who previously worked at Nasdaq before taking senior leadership roles elsewhere, will rejoin the company as head of listings for the Texas, Southern US and Latin America operation, the company said in the memo. Jack Cassel, who joined Nasdaq in 2018, will head the Western segment.

ADVERTISEMENT CONTINUE READING BELOW

Nasdaq’s move underscores the level of competition for IPO business, which is beginning to rebound after a lengthy slump amid geopolitical uncertainties, inflation and higher interest rates. Nasdaq and the New York Stock Exchange dominate the IPO market, but new venues including the Texas Stock Exchange are trying to upend that by touting advantages such as lower compliance costs. Nasdaq’s Texas, Southern US and Latin America segment supports some 480 clients representing $1.9 trillion in market capitalization, according to the memo.

Once a company lists, it generates steady revenue for the exchange. To entice corporations to choose their venues for IPOs, exchanges typically offer sweeteners such as ringing the opening bell on the trading floor — or in New York City, marketing on billboards in Times Square.

Nasdaq chief executive officer Adena Friedman, who’s steered the company beyond markets and listings, said in July that she expects momentum in IPOs to pick up next year, when “we should see more momentum in terms of the pipeline of companies we have been talking to.”

© 2024 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.