By Jacob Bunge
Technology giant Oracle Corp. (ORCL) announced plans Thursday to
transfer its share listing to the New York Stock Exchange from the
Nasdaq Stock Market, marking one of the biggest listing defections
in history.
The Redwood City, Calif.-based technology company represents
$160.6 billion in market capitalization, according to FactSet, and
its move to the NYSE deals a blow to Nasdaq's core franchise in
tech listings.
"After careful consideration and deliberation, the Board of
Directors of Oracle determined that the proposed transfer of
Oracle's common stock listing to the New York Stock Exchange would
be in the best interests of its stockholders, customers and
partners," company officials wrote in a statement Thursday.
The company will retain its ticker, ORCL, and aims to begin
trading on the Big Board on July 15. Officials for NYSE Euronext
(NYX) had no immediate comment.
A spokesman for Nasdaq OMX Group Inc. (NDAQ) said in a statement
Thursday, "Nasdaq offers a low-cost value proposition that has
delivered one of the most liquid stocks in the world, Oracle, which
grew nearly 10,000% while listed on our exchange. We wish them well
in the future."
Exchanges battle fiercely over listings, which bring listing
fees as well as revenue from trading the shares. Trading activity
in NYSE- and Nasdaq-listed stocks tends to concentrate on the
exchange where those shares are listed at the open and close of
markets each day.
Just as important to exchanges is the prestige that comes with
landing a brand-name company. Last year, Nasdaq celebrated as it
won the listing of Facebook Inc. (FB) and persuaded Kraft Foods
Inc., then a component of the Dow Jones Industrial Average, to move
from the Big Board to Nasdaq. Kraft had a $68 billion valuation at
the time its shift was announced. The company has since divided
into Mondelez International Inc. (MDLZ) and Kraft Foods Group Inc.
(KRFT), which are both listed on Nasdaq.
With Oracle, the NYSE landed a major counterpunch, according to
Patrick Healy, chief executive of Issuer Advisory Group, which
helps companies pick an exchange to list their shares.
"It's certainly among the biggest transfers ever," in terms of
market capitalization, Mr. Healy said. "The real question is what's
behind the shift."
Exchanges typically woo companies by extolling the virtues of
their market model and outlining ways to promote the companies,
through marketing efforts and high-visibility locations like the
front of the NYSE's downtown Manhattan headquarters.
Over the past year, NYSE and Nasdaq have ramped up the rhetoric
around which exchange has a better handle on trading. NYSE
officials have raised Nasdaq's problematic management of Facebook's
stock-market debut, while Nasdaq has raised questions around the
massive trading error at Knight Capital Group Inc. (KCG) last
August, a designated market maker on the NYSE, according to people
close to the discussions.
Write to Jacob Bunge at jacob.bunge@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires