Domain has strong stock market debut following Fairfax split

Domain’s first day on the Australian stock market as a stand alone business was a success with the company finishing trading at $3.90 a share, valuing the venture at slightly over two billion dollars.

Fairfax went ahead with a market split of the Domain property listing business after the company rejected a series of offers for the division earlier this year. Recently the site has moved into business journalism as well as events and training as it looks to broaden its revenue and audience bases.

Domain CEO Antony Catalano

With the book values halved following the split, Fairfax had a brutal start on the ASX today with shares falling at the morning’s opening from 80c to 69c, a fall of nearly 14% although they recovered to 74c by the end of the day.

Fairfax’s shares have fallen from $1.06 this week as the split approached. However, the good news for Fairfax shareholders is having been given one Domain share for every ten they held in the old company, the combined value of shares is $1.13, putting them slightly ahead.

REA Group, Domain’s competitor, also had a strong day finishing up at $77.01, up from yesterday’s close of $76.25. Majority News Corp owned REA remains far larger than Domain with a ten billion dollar market cap, almost five times it’s smaller rival.

Domain also revealed to the stock exchange today it had taken a 740,000 share cross-holding in its former parent, which still holds 60% of the real estate listing company’s stock.


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