Borse Dubai expects to raise up to $1.6b from stake sale in Nasdaq Inc.

New York: Nasdaq Inc.'s biggest shareholder, Borse Dubai, is selling roughly one third of its stake - or 27 million shares - in the US exchange operator.

Borse Dubai is offering the shares at $58 to $60 each, which would raise as much as $1.6 billion. It would still own more than 10 per cent of Nasdaq's stock and plans to agree to an 18-month lockup of the shares, according to a statement Tuesday. Underwriters will also have a 30-day option to buy as many as 4 million additional Nasdaq shares.

Provided Borse Dubai continues to own at least 10 per cent of Nasdaq's outstanding stock, the company can designate a nominee to Nasdaq's board. The offering will would make Borse Dubai Nasdaq's second-largest shareholder.

"Today's offering is being conducted to enhance the capital structure and liquidity within the Borse Dubai Group," said CEO Essa Kazim. "We continue to be a long-term shareholder in Nasdaq and are invested in the success of the company."

Shares of Nasdaq fell 3 per cent to $60.60 in extended trading at 5:17 p.m. in New York. The stock had climbed 7.4 per cent this year through the close of regular trading.

Borse Dubai took a stake in Nasdaq as part of a 2008 deal where Nasdaq acquired Sweden's OMX AB. Borse Dubai was previously the largest shareholder in London Stock Exchange Group plc before selling its stake in 2015. Borse Dubai and Nasdaq signed an agreement in 2017 to boost the technological infrastructure of Dubai's stock exchanges and improve trade practices.