China’s Alibaba Group has tapped the New York Stock Exchange Euronext to list its highly-anticipated initial public offering, Bloomberg reports. It’s something of blow to the prestige of Nasdaq OMX, which has been a de facto home for technology IPOs for decades.
Blue-chip tech companies including Microsoft, Facebook, and Google have chosen Nasdaq. And its edge in tech listings has been dramatic at times: Nasdaq was home to 243 tech IPOs in the first quarter of 2000 compared to just five at the NYSE.
But, so far this year, the NYSE has had 22 tech IPOs compared to Nasdaq’s 17, according to Dealogic. Last year, the NYSE had two more tech IPOs than Nasdaq. The trend started taking hold in 2010 but gained serious traction after Nasdaq’s embarrassing gaffes with Facebook’s IPO (paywall) in 2012. Here’s a chart of the number of tech companies the two exchanges have listed over the past decade and half:
But, where it really matters, Nasdaq appears to be head and shoulders above its rival: deal values. Excluding the pending Alibaba listing, Nasdaq so far this year has had tech IPOs valued at $97 billion compared to $48 billion at the NYSE.
It’s also worth noting that the first-quarter this year has been record breaking for both exchanges when it comes to tech stock listings. Not even all of 2000—which saw $30 billion worth of IPOs for Nasdaq and $5 billion for the NYSE—holds a candle to the current value of deals churning out of the tech IPO machine lately.
So in that way both Nasdaq and the NYSE have been winners.
The NYSE may get Alibaba’s IPO, but Nasdaq still holds a lead in tech IPOs where it matters
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