Larger-than-life cinema specialist IMAX (Nasdaq: IMAX) is dropping off the Nasdaq stock exchange.
Don't worry, there is no delisting action behind this move and the company is not in trouble. Instead, IMAX is moving its shares to the NYSE stock exchange. Citing "the global nature and expansion of our brand," IMAX CEO Richard Gelfond explained that the move gives IMAX access to the markets it intends to reach, presumably in ways that a Nasdaq listing couldn't. Keeping investor confusion to a minimum, the four-letter ticker symbol will stay the same even after moving into the typically three-letter neighborhood of NYSE.
This is not a unique move by any means. Last February, stock broker Charles Schwab (NYSE: SCHW) made exactly the same move and kept its old Nasdaq ticker around for NYSE trading. And it's a two-way street: Vodafone Group (Nasdaq: VOD) and Hasbro (Nasdaq: HAS) are just two of the more recent and high-profile moves in the other direction.
Vodafone cited lower listing fees as a reason to move to the Nasdaq OMX (Nasdaq: NDAQ) exchange and Hasbro talked about "re-imagining" its operations -- read that as "cost savings." The "market access" reasons behind moving to NYSE Euronext (NYSE: NYX) and its Big Board are less clear. Scholarly papers find that it's an unusual move among companies that meet the stricter listing requirements of the NYSE, and often leads to a rash of acquisitions and raising more debt.
Schwab has indeed raised new debt since going NYSE but used only $150 million to acquire Windhaven Investment Management, so not exactly a spending spree there. Does IMAX have a big, expensive growth plan in the works? Only time will tell, but this market move could be an early sign.
Add IMAX to your Foolish watchlist to stay on top of this longtime Rule Breaker and its international expansion plans.
