Nasdaq Just Landed the Largest IPO in History. Here's Why the Exchange Stock Could Keep Winning.
The Nasdaq was chosen as SpaceX's home, and more big names could be on the way.
Nasdaq Just Landed the Largest IPO in History. Here's Why the Exchange Stock Could Keep Winning.
Overview
SpaceX (NASDAQ: SPCX) listed on the Nasdaq exchange, which is owned and operated by Nasdaq (NASDAQ: NDAQ). The initial public offering rose a massive $75 billion ($85.7 billion including overallotments offered to its investment bankers), with the stock rising nearly 20% on its first day of trading (and another 20% on the second day). However, the biggest winner from this massive IPO could actually be Nasdaq itself. Here's why.
The Nasdaq exchange has always been technology-focused. That's likely one of the reasons why SpaceX chose to list on the exchange. That decision gives the Nasdaq exchange immense street cred. If SpaceX thinks the Nasdaq is the place to be, other tech companies are likely to follow suit. And there are some big names looking to hold IPOs right now, including artificial intelligence giants OpenAI and Anthropic. Exchanges generate listing fees from IPOs, so there's a financial benefit to hosting IPOs beyond simple street cred for Nasdaq as a business. And ongoing listing fees create an annuity-like income stream.
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Originally published at www.fool.com.
