Fairfax Media’s New Zealand online auction site Trade Me began trading on the Australian and New Zealand stock exchanges yesterday.
The IPO raised a total of $NZ363.5 million and a total of 134.6 million shares have been issued to new investors which include Trade Me staff under the Executive Share Plan. Fairfax Media will hold the remaining 66 percent of the shares in Trade Me but the asset will now become a stand-alone company.
Upon listing, Trade Me had a market capitalisation of approximately $NZ1.07 billion based on the offer price of $NZ2.70 per share.
Trade Me was founded by entrepreneur Sam Morgan in 1999 and was acquired by in 2006 by Fairfax Media for $NZ700 million, plus an earn-out of up to an additional $NZ50 million, which was fully earned following the acquisition.
Trade Me chairman David Kirk said the offer attracted strong support from a wide range of institutional and retail investors.
“We have a strong and diverse range of shareholders including Trade Me members, mums and dads, institutions, and Trade Me staff. We’re looking forward to serving these investors well in the years ahead,” he said. ®