Nasdaq
For nearly two decades, companies on the New York Stock Exchange (NYSE) have transferred their listings to Nasdaq. This year, Nasdaq is celebrating a major milestone, 500 listings have made the switch, representing $2.7 trillion in market value.
Sixteen switches have occurred in 2024 alone, including prominent government technology contractor SAIC and legendary food manufacturer Campbell’s. It’s a sign that more public companies see the value of finding a new home at Nasdaq.
A Cascade of Switches
In 2003, the Securities and Exchange Commission (SEC) enacted sweeping reforms, including the removal of “Rule 500,” which enabled more fair competition among stock exchanges. Then, in 2007, the SEC allowed companies to retain the same ticker when switching exchanges, which removed a significant hurdle to transfers.
Nasdaq switches have picked up momentum ever since; listings that have switched in just the past half-decade make up over $1 trillion of the $2.7 trillion total market cap of transfers, emphasized J.R. Mastroianni, Head of Exchange Transfers and Listing Services at Nasdaq.
The scale of entities making the switch has also gathered momentum. Companies that have transferred include 40 members of the S&P 500 and 24 of these transfers following the move are now in the Nasdaq-100 index. Campbell’s is the oldest founded company to have ever transferred to Nasdaq, while industrial gas company Linde’s jump marked the “largest listing transfer by market cap that’s ever-switched exchanges,” Mastroianni said.
Companies that have switched span 18 countries and 12 business sectors. Of them, 32 have a market capitalization of over $20 billion.
In the last five years, Nasdaq has increasingly partnered with “well respected and tenured large cap leaders across all sectors” he emphasized.
As Nasdaq continues to attract prestigious business partners, switching exchanges is a matter of ease, strong partnership, and support. To Juan Carlos Pelaez, Linde’s Vice President of Investor Relations, it’s a simple question of, “Why not?”
“If you meet the threshold to make it to the Nasdaq-100, I’d ask, ‘Why aren’t you on the Nasdaq?’” he said. “There is no reason why not to be; it’s been a flawless change. You should be doing it – now.”
What Sets Nasdaq Apart
“Above all, Nasdaq wants to be a meaningful business partner to their listed issuers,” Mastroianni said. Nasdaq invests in direct ownership and operation of advanced strategic client services for IROs, CFOs, CEOs, and boards to utilize. In providing these services, Nasdaq meets the complex needs that accompany operating as a public company.
Of course, there’s the unique opportunity to be included in the Nasdaq-100 Index, a source of meaningful passive investment for corporations. And if the board needs an extra push, there’s always the fact that Nasdaq’s “more cost-effective with a listing fee structure that will not penalize for growth opportunities,” Mastroianni said. “The combination of these advantages has resonated with executives and boards alike.”
Nasdaq’s backend market structure and execution technology has rapidly advanced over the last decade, he said. “Assessing the changes in the equities markets and how your stock actually trades today is just good corporate discipline.”
Making the Leap Manageable
In the experience of Nasdaq’s business partners, the leap is more of an easy hop.
During Linde’s transfer, Pelaez found that Nasdaq was assiduous in ensuring Linde was well-informed. “They held our hand through the process, made it very easy, and the execution was flawless. We got it done exactly how we had timed it originally, and it worked out really well.”
In a securities environment that is only becoming more complex, Nasdaq stays modern and nimble to provide effective client services. It also ensures that switching is seamless along the way.
At SAIC’s bell ringing ceremony, CEO Toni Townes-Whitley highlighted Nasdaq’s modern spirit. “We want to be part of a shift of our organization into more innovative solutions that we’re bringing into the government market,” she said. “And when I think of innovation, I think of Nasdaq.”
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