Nasdaq Private Market

History

2021: Nasdaq launches company to trade shares of companies before their IPO

On July 21, 2021, it became known that the exchange Nasdaq entered into an agreement with large, the American banks including Goldman Sachs for the Morgan Stanley development of its platform, which allows people to trade shares of private companies that enjoy great interest from investors seeking high returns on investments.

The transaction may contribute to an increase in the number of transactions on the Nasdaq Private Market service. The latter is the trading platform of the exchange operator for shares of companies that have not yet held an initial public offering (IPO).

Nasdaq forms company to trade shares of companies before their IPO

Initial public offering of shares or IPO - represents the first public sale of shares of its company to an unlimited number of persons and investors. The process itself is as follows, the company issues a certain number of shares and places them on the stock exchange, and any investor or fund can purchase these securities. The entire preparatory routine related to the withdrawal of shares to the exchange is handled by the investment bank with which the issuer for the IPO enters into an agreement with the company. In addition, a stock exchange is also selected, where shares and brokers will be placed. It is in this direction that Nasdaq Inc. intends to work and offer its services to banks.

Since the beginning of 2019, interest rates around the world have been reduced to almost zero, and investors are forced to look for other sources of income, which makes investing in private companies an attractive option worldwide.

As part of the deal, Nasdaq Private Market will become a separate independent company that will receive investments from SVB Financial Group, Citigroup, Goldman Sachs Group and Morgan Stanley, the exchange operator officially announced this on July 21, 2021, but the financial terms of the transaction have not yet been disclosed

Nasdaq Private Market, which was established in 2014, will retain its main operating teams. The platform intends to manage operations with shares of private companies, such as tenders, auctions and block trades of investors.

A number of companies, including BlackRoc and JPMorgan Chase & Co, are looking to give their customers greater access to investing in private companies. ^[1][2]

Notes