Competition for tech sector IPOs is heating up. The Nasdaq OMX Group (NDAQ) has but a narrow lead over NYSE Euronext (NYX), which recently floated IPOs for Trulia and Workday Inc. Nasdaq, which lists Google, Apple and Microsoft, was a tech sector magnet. But in 2008, NYSE relaxed requirements and allowed newer and smaller companies to have a seat. Ken Marlin of Marlin & Associates said that NYSE realized it was in danger of becoming irrelevant. He told The Wall Street Journal, “The perception was that everyone that was hot and growing in tech was going to Nasdaq. If NYSE didn’t do something about it, they would have all the companies that were old and slow.”
NYSE recently listed LinkedIn and Yelp. Nasdaq had Groupon, Zynga and Facebook’s memorable $16 billion IPO. Technical glitches marred the offering, and neither exchange floated an IPO for six months. But observers think the problems were unique to that sale. “People don’t seem to lay blame at the feet of Nasdaq, given the broader issues involving Facebook itself. To me, I think that people are viewing it more as an outlier,” said Dan Mahoney, a partner at Snell & Wilmer LLP told the Journal.