Days before what’s expected to be the biggest listing of the year, Nasdaq Inc. unveiled a remodeled floor where companies launch their public stock offerings in a bid to win new business.
(Bloomberg) — Days before what’s expected to be the biggest listing of the year, Nasdaq Inc. unveiled a remodeled floor where companies launch their public stock offerings in a bid to win new business.
The second-largest US exchange debuted its new MarketSite on the second floor of a tower in New York City’s Times Square. The newly designed, tech-focused space houses a 360-degree TV studio and museum of artifacts from Nasdaq-listed companies, including Costco membership cards, vintage PepsiCo bottles and Mattel’s Barbie and Ken dolls.
It’s a re-imagined space for public companies to interact with investors and employees, just ahead of big expected debuts from Arm and Instacart Inc.
“The IPO used to be a broadcast-first experience. We wanted to make it more of an informative event,” Zef Nikolla, head of Nasdaq’s MarketSite, said in an interview Thursday, the day of its re-opening. “We’re focused more on the IPO itself.”
To create a more tailored experience, Nasdaq’s IPO-execution officer sits at a desk on the phone with bankers, pricing the first trades while guests watch. A separate host narrates what they are seeing. Cameras and TV sets roll in and out of the space, hiding behind walls to be less intrusive. There’s also an internal livestream available.
“Not everyone is aware of what’s happening during a company’s first-trade,” Nikolla said. “We want guests to focus and understand those dynamics.”
It’s all part of an effort to keep companies on the Nasdaq and to draw new ones when they decide to go public. It’s also about winning business over arch-rival New York Stock Exchange, where ringing the bell in the center of Wall Street has long been a sign that a company has arrived.
Nasdaq, the much younger venue, has traditionally been the place for upstart, growth-oriented tech companies. The NYSE has long been considered the more prestigious — and expensive — home for stable, old-line companies.
Both have been grappling with a post-Covid-19 slump in the capital markets that is just starting to thaw. British chip-designer Arm is expected to start trading as early as Tuesday on the Nasdaq in the biggest IPO of the year. Online grocery delivery startup Instacart is also preparing to go public on Nasdaq this month.
How they perform will help forecast the state of the IPO market through 2024. Nasdaq and NYSE will have to compete for new listings, where everything from marketing dollars to investor relations solutions are pitched as sweeteners.
MarketSite is one of those perks. The renovation, which took eight months to complete, is like a chameleon, pivoting to match each company that chooses Nasdaq.
Digital signs wrap the room overlooking Times Square.
The banners switch depending on the day and firm that is making an appearance. Even the music and the lighting on the floor and columns of the room can change to match the mood of the organization;each company gets the option to send a pre-approved playlist for their day on the MarketSite.
“Everything is tailored to the client,” Nikolla said.
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