Tuesday 13th December 2011
|Text too small?|
Shares of Trade Me, New Zealand’s biggest online auction site, first traded at $2.76 cents in their NZX debut, 2.2 percent above their price in Fairfax Media’s initial public offering of 34 percent of the business.
The shares last traded at $2.83 and 4.2 million shares changed hands in the first 10 minutes of trading. The IPO raised a total of NZ$363.5 million from 134.6 million shares sold to investors at $2.70 apiece, including Trade Me staff under an executive share plan.
Fairfax plans to use the capital to repay debt and increase dividends.
“You can call it a successful debut - investors were probably hoping to see the price over $2.80,” said Grant Williamson, director at Hamilton Hindin Greene. “It is still early days but we are not expecting much more movement in levels than we have already seen,” he said.
Fairfax acquired Trade Me for $750 million in 2006 and it posted a A$400 million annual profit in the 2011 financial year, making the auction site a stand-out for the media company contending with dwindling advertising revenue from its traditional newspaper business.
Trade Me founder Sam Morgan is on the Fairfax Media board and David Kirk, a former Fairfax chief executive, has been named as chairman of the listed company.
No comments yet
Trade Me (TME)
Trade Me wants to increase board fees 23 percent to accommodate extra directors
Trade Me earnings growth may slow to about 8 percent in 2014, from 12 percent in 2013, Macdonald says
Trade Me shares drop 4.2 percent, worst performer on NZX 50, as earnings seen slowing in 2014
Trade Me annual profit rises 4 percent, warns of slower growth in 2014 as it reinvests in the business
Trade Me 1H profit beats IPO outlook, signals more acquisitions
Trade Me shares halted as Fairfax sees $1.5 bln payday
Trade Me to meet prospectus dividend target for FY; shares fall
Trade Me shares dip after earnings on 'muted' outlook
Trade Me beats IPO forecast on classified sales, smartphone aps