NYSE challenges Nasdaq in tech IPOs

August 25, 2011 – 5:45 pm

Business Insider takes a look into NYSE’s move into tech IPOs including acquiring IMAX:

Once the gap in listing requirements and technology between the NYSE and Nasdaq were narrowed, the NYSE played up the importance of a still-potent asset: its 200-year-old brand. It has marketed itself to Nasdaq-listed companies and encouraged them to switch to the NYSE. In some cases the pitch worked. IMAX Corp., known for its giant-screen film formats, switched to the NYSE in February.

“We were approached by the NYSE. They made a case for why it would make sense for us to go with them,” says IMAX CEO Richard Gelfond. “They had a global platform and perhaps more history as a well-known brand. A lot of our peers listed on the NYSE, and they offered us marketing benefits we were not getting.”

Fees and listing requirements weren’t the key issue for IMAX, a 43-year-old tech company with more than $248 million of revenue in 2010. The main factor was that the NYSE offered to help promote IMAX — for example, including it in newspaper advertisements and a billboard in Silicon Valley. “They went out of their way to make us feel special,” Gelfond says. The NYSE also invited Gelfond to attend conferences with CEOs from China, a key growth market for IMAX. Of the 700 theaters the company has open or in development, 177 are in China.

Gelfond says IMAX’s investor relations department is pleased with the level of market intelligence that it receives from the NYSE. Chu says the market intelligence is a function of the NYSE’s direct market makers, who have roots in the traditional auction market. They use capital from their balance sheets to support the trading of NYSE-listed stocks; this reduces volatility and narrows spreads, according to Chu. “The companies also get one of the top traders of their stock as an additional information source about who is buying and selling their stock,” he says.

Read the full article: Link >>

UPDATE: And how are IMAX shares doing?

Market Intelligence Center: IMAX (IMAX) Trading Near $13.23 Support Level | IMAX (IMAX) Showing Bearish Technicals But Could Fall Through $15.99 Support | IMAX (IMAX) Trading Near $17.28 Support Level

Ticker Watch: Early Morning Movers: (IMAX), (BUD), (DEO), (AIXG), (CTXS) | Top Gainers: (AMEX: NXG), (NYSE: NBG), (NYSE: DRC), (NYSE: IMAX), (NYSE: OZM)

Zacks Investment Research: BEST RELATIVE PERFORMANCE IN THE MOVIES & ENTERTAINMENT INDUSTRY DETECTED IN SHARES OF IMAX (IMAX, VIA.B, NWSA, NWS, LGF) | Zacks Sell List Highlights: Gentiva Health Services, IMAX Corporation, China Lodging Group and The Scotts Miracle-Gro Company | SHARES OF IMAX RANK THE HIGHEST IN TERMS OF RELATIVE PERFORMANCE IN THE MOVIES & ENTERTAINMENT INDUSTRY (IMAX, LCAPA, DWA, RGC, DIS) | SHARES OF IMAX RANK THE HIGHEST IN TERMS OF RELATIVE PERFORMANCE IN THE MOVIES & ENTERTAINMENT INDUSTRY (IMAX, LCAPA, NWSA, NWS, DIS)

Retirement Planning: P&F Low Pole – IDU, IM, IMAX, IPI, IRM | P&F Low Pole – IMAX, IPI, IRF, IRM, IVN

Wall Street Pit: Option Activity Alert: IMAX, AMZN, HAL, MU | Trade Ideas: EXLS, TLAB, IMAX, NVTL, THQI

iStockAnalyst: All Eyes On IMAX Corp. Calls As Shares Soar

Phil’s Stock World: All Eyes On IMAX Corp. Calls As Shares Soar

RTT News: IMAX Corp. (IMAX) Has Climbed Above Today’s Range

Financial News Network Online: Shares of Imax Rank the Highest in Terms of Relative Performance in the Movies & Entertainment Industry (IMAX, LYV, DWA, RGC, CNK) | Possible Bearish Harami Candle Pattern Detected for Imax (NASDAQ:IMAX) | Shares of Imax Rank the Highest in Terms of Relative Performance in the Movies & Entertainment Industry (IMAX, LCAPA, LYV, DIS, TWX) | Imax is Among the Companies in the Movies & Entertainment Industry with the Best Relative Performance (IMAX, LYV, LCAPA, DWA, CNK)

The Motley Fool: IMAX by the Numbers | This Week’s 5 Smartest Stock Moves

China Analyst: Top 10 Media Stocks with Highest Return on Equity: IMAX, MHP, ENL, RUK, LGF, GCI, VIA.B, JW.A, DLB, GSOL (Sep 05, 2011)

Health Talk and You: New CCI Buy Signals – IDX, IFN, IIM, IL, IMAX | Hollow Red Candles – IHS, IIF, IMAX, IXN, JBT