Battle for Facebook’s Exchange Listing: NYSE or Nasdaq?
Facebook’s move toward the public markets has come one step closer with its alleged plans to file documents with the Securities and Exchange Commission as soon as next week.Within this S-1 filing, the social media giant could state which exchange will get its highly coveted stock listing: either the New York Stock Exchange (NYSE:NYX) or Nasdaq (NASDAQ:NDAQ).
The selection is expected to start a PR war between the exchanges but it may come later than sooner. According to the Wall Street Journal, companies don’t always include the selected primary exchange in these documents. Facebook could announce their I.P.O. next week, but this information could be excluded.
Lending further support to this is information from Nasdaq. The exchange said that for the 231 companies that recently filed S-1 document, 25 didn’t state the exchange for its primary listing.
NYSE vs. Nasdaq
NYSE got bragging rights with listings from LinkedIn, Pandora (NYSE:P) and Renren (NYSE:RENN); Nasdaq fared just as well with Groupon, Zynga (NASDAQ:ZNGA) and TripAdvisor (TRIP). The Groupon coup was a big win for the exchange but it came through a lot of hard work.
What dog and pony show will the exchanges present for Facebook?
In addition to selecting an exchange for the traditional market issues including of liquidity and spreads, companies also look at the promotional opportunities. This includes ringing the opening and closing bell at the exchanges and cost. Neither exchange has commented on the potential listing.