Texas Challenger to Nasdaq, NYSE Lands Fifth Company in a Week

Texas Capital Bancshares Inc. will switch its primary listing to the Texas Stock Exchange from Nasdaq, making it the fifth company in a week to jump to the upstart marketplace.

The Dallas-based financial services provider expects to begin trading on the new exchange on Oct. 8, according to a company statement Monday. The announcement came four days after pipeline operator Energy Transfer LP and three related companies said they would shift to the TXSE.

“Bringing Texas Capital’s corporate listing home to the Texas Stock Exchange is the logical next step as we concurrently expand access to the global capital markets in Texas and beyond,” said Chief Executive Officer Rob Holmes.

The TXSE, which aspires to break off equity listings from Nasdaq and the New York Stock Exchange, is gaining its first converts thanks to Dallas business leaders with close ties to the marketplace. Holmes serves on a TXSE advisory board. Billionaire Kelcy Warren, Energy Transfer’s chairman, is a major backer of the exchange’s parent company, TXSE Group Inc.

Energy Transfer also has ties to three other publicly traded companies that announced their switch to TXSE last week: Sunoco LP, SunocoCorp and USA Compression Partners LP.

Texas is growing as a financial hub as banks from Goldman Sachs Group Inc. to Wells Fargo & Co. expand their footprints in the state, which touts its low taxes and favorable regulatory climate.

Last month, Texas Capital said it would transfer the listings of two exchange-traded funds to TXSE. The financial services company, which has a market value of about $4.3 billion, will change its ticker to TXCP shortly after moving its corporate listing to the Texas marketplace.

“We’ve been considering it since the day we knew it was going to come to fruition,” Holmes said in an interview, applauding the exchange’s “pro-issuer” approach.

Founded by James Lee, the Dallas-based TXSE — pronounced “TEX-ee” — has raised over $300 million from investors including JPMorgan Chase & Co., BlackRock Inc. and Ken Griffin’s Citadel Securities. It plans to target listings from companies in Texas and the southeastern US but it faces stepped-up competition from Nasdaq and the NYSE, which have launched Texas-based venues.

NYSE Texas recently opened operations at Old Parkland, a luxury campus in Dallas popular with family offices and private equity firms. Nasdaq launched its own dual-listing exchange in Texas with a bell-ringing at the Alamo in March.