Exchange Titans NYSE And Nasdaq Square Off Over New Listings In Reviving IPO Arena

The New York Stock Exchange and Nasdaq Inc NDAQ are aggressively vying for the choicest new stock listings as signs of a revived IPO market emerge.

What Happened: The competition over new stock listings between the two market exchanges has reignited, indicating a resurgence in the IPO market after a considerable hiatus, according to a Wednesday Wall Street Journal report.

Nasdaq recently secured the imminent listings of grocery delivery firm Instacart and chip designer Arm. In contrast, NYSE clinched deals with the marketing-automation platform Klaviyo and German footwear brand Birkenstock.

While the IPO market has been relatively quiet due to macro factors such as rising interest rates and inflation, the race between the two stock exchange giants suggests a turnabout, the Wall Street Journal said.

Why It Matters: Securing listings is of significant importance for exchanges, the Wall Street Journal noted, as listing fees are a stable source of income, potentially netting up to $500,000 annually per company, compared to the unpredictable nature of trading volumes.

Acquiring marquee listings not only brings financial rewards but also gives bragging rights in the competitive industry, the Wall Street Journal said.

Check out Benzinga’s IPO Calendar.

In the backdrop, the IPO market had seen dwindling numbers, with 2022 recording the lowest funds raised through traditional IPOs in over two decades.

Recent data suggested NYSE was currently leading, having raised roughly $6.5 billion this year, overshadowing Nasdaq’s $3.7 billion, the Wall Street Journal said. If the trend continues, NYSE could potentially break Nasdaq's consecutive four-year dominance.

The resurgence and the competition between NYSE and Nasdaq are indicators for investors, hinting at a potential influx of IPOs and a shift in the investment landscape.

With major players such as Arm, Klaviyo, Birkenstock and Instacart preparing for their market debuts, the battle between the two exchanges is bound to influence the IPO market’s direction for the upcoming year.

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