Nasdaq Leads Over NYSE in IPO Listings, Drawing Major Tech and Global Firms in 2023

Nasdaq, Inc. NDAQ is reportedly poised to outpace the New York Stock Exchange in securing initial public offerings in 2023. 

This marks the fifth consecutive year where the once-leading NYSE has trailed its competitor, the Wall Street Journal said in a news report.

Nasdaq has raised $13.6 billion from IPOs, surpassing the $10.4 billion generated by new listings on the NYSE, the report read, citing data provider Dealogic.

According to some market veterans, the rivalry between the two U.S. exchanges has enhanced New York's appeal as a listing destination for global companies. 

This positions it favorably compared to markets like London or Hong Kong, which are predominantly dominated by a single major exchange operator, per the Wall Street Journal report.

This year, the Nasdaq welcomed the debut of several companies, including U.K. chip designer Arm Holdings Plc ARM, which secured an impressive $5.2 billion in the largest IPO of the year, grocery-delivery service Maplebear Inc. CART and solar-technology provider Nextracker Inc. NXT.

"There's been a generational shift and a much stronger trend toward digital transformation across our entire economy," said Karen Snow, global head of listings at Nasdaq, which the Wall Street Journal noted. "And that really plays well to Nasdaq's strengths."

The NYSE successfully attracted Kenvue Inc. KVUE, the Johnson & Johnson JNJ healthcare spinoff, which raised $4.4 billion in 2023's second-largest IPO. 

German shoemaker Birkenstock Holding PLC BIRK, fast-casual restaurant chain CAVA Group, Inc. CAVA, and marketing-automation firm Klaviyo, Inc. KVYO also opted for the Big Board for their respective IPOs.

Nasdaq and the NYSE engage in intense competition for IPOs, a crucial revenue source derived from fees and heightened trading activity, the Wall Street Journal reported. 

Generally, Nasdaq offers more cost-effective listing fees compared to the NYSE, the report added.

Price Action: NDAQ shares are trading higher by 0.60% to $57.39 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.