American Electric Power on Tuesday announced it will become at least the fourth major U.S. utility to switch its stock listing from the New York Stock Exchange to the Nasdaq Stock Market, joining Exelon, Xcel Energy and Alliant Energy.
The move to Nasdaq’s Global Select Market will be effective with the market’s opening bell on Oct. 1. The company’s stock will continue to trade under the “AEP” ticker symbol.
In explaining the move, AEP CEO Nick Akins said, “Nasdaq’s tradition of innovation aligns well with our company’s strategic goals.”
“As AEP transitions to a cleaner energy future, we’re harnessing the power of technology to create new solutions for our customers while bringing value to our shareholders,” he said.
Nasdaq claims it has won 76% of all switches among U.S. equity exchanges since 2005, saying “stocks listed on Nasdaq experience less volatility, tighter spreads and more depth.” It also says it is the only exchange in the Dow Jones North America Sustainability Index. Among the companies that have switched to Nasdaq are PepsiCo, T-Mobile, Kraft Foods and AstraZeneca.
Xcel, which switched from the NYSE effective Jan. 2, 2018, said it was the first Fortune 500 utility listed on Nasdaq. Alliant moved in late December 2018, noting its “shares will be listed on the same exchange as some of the world’s largest technology companies.”
Exelon, which made its move on Sept. 25, 2019, issued a press release saying it made the move to join “leading climate-focused innovators.”
“Nasdaq is the platform that many of the world’s leading innovators call home and — importantly — shares our commitment to a low-carbon economy and reducing greenhouse gas emissions,” Exelon CFO Joseph Nigro said in announcing its move. “We believe that moving to Nasdaq provides us the most cost-effective channel to connect with investors efficiently through technology.”
In recent years, Columbus, Ohio-based AEP has taken several actions to back up its mission of “redefining the future of energy and developing innovative solutions.” The company has an aspirational goal of zero emissions by 2050 and has said it believes it can cut CO2 emissions by more than 80% by 2050 from its 2000 levels. (See AEP Ups its Emission-reduction Targets for 2030.)
