Bloomberg News

Oracle to List Shares on NYSE in Biggest Exchange Defection Ever

June 20, 2013

Oracle Corp. (ORCL:US) said it will move its stock listing to the New York Stock Exchange (NYX:US) from the Nasdaq Stock Market, making the database-software maker the biggest company ever to jump between the rival exchanges.

Oracle said after the close of exchanges that it expects to start listing its shares on the NYSE on July 15 and will keep its ORCL symbol. Nasdaq, which grew its business in the 1990s with the boom in initial public offerings of technology companies, is saying goodbye to the fourth-biggest U.S. company it lists.

In addition to simple bragging rights, the switch should result in increased trading revenue for NYSE Euronext and may incite Nasdaq OMX Group Inc. to try to win more defections from the Big Board, said Patrick Healy, chief executive of Issuer Advisory Group, which helps companies decided where to list.

“This is a huge home run for NYSE, and indicative of competition that’s been heating up and will probably pick up as a result of this,” said Healy. “You’ll see Nasdaq go even harder after some NYSE companies now, you can be sure of that.”

Oracle’s departure follows several high-profile wins for Nasdaq in the past year and a half. The second-largest U.S. exchange won Texas Instruments Inc. (TXN:US)’s listing from NYSE in 2011 and scored Facebook Inc. (FB:US)’s initial public offering last year. In June 2012, Kraft Foods Inc., at the time valued at about $68 billion and a Dow Jones Industrial Average member, moved from NYSE to Nasdaq. At Thursday’s close, Oracle’s market value was $156 billion.

Most-Traded

An average of about 20 million shares of Oracle traded in the past 30 days, making it the 18th most-traded stock in the Standard & Poor’s 500 Index, according to data compiled by Bloomberg. Oracle’s annual listing fee was about $100,000, while it will pay $500,000 a year to list on NYSE, Healy said.

“Oracle is an enormous company that trades enormous volume, and that volume means revenue for the exchange,” he added. “At a minimum NYSE will bend over backwards to co-brand this, which means exposure and publicity for Oracle.”

Oracle made the switch because its board determined it would be in the best interests of its shareholders, customers and partners, the company said in a statement. It has been listed on Nasdaq since its initial public offering in 1986.

Rich Adamonis, an NYSE spokesman, declined to comment on the switch. Oracle spokeswoman Deborah Hellinger declined to comment on the company’s reasons for moving.

“Nasdaq offers a low cost value proposition that has delivered one of the most liquid stocks in the world, Oracle, whose market cap grew 10,000 percent since 1990,” said Joe Christinat, Nasdaq spokesman, in a statement. “We wish them well in the future.”

To contact the reporter on this story: Sam Mamudi in New York at smamudi@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net


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Companies Mentioned

  • ORCL
    (Oracle Corp)
    • $38.28 USD
    • -0.16
    • -0.42%
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