NZME shares plummet after listing as former parent APN News & Media also takes a hit

Shares in the newly floated NZME business have lost 21% of their value in their first two days of trading.

Meanwhile former parent company APN News & Media has seen 13% wiped off its own share value since the demerger of its New Zealand assets into the new entity.

The company successfully completed the demerger of its NZME (ASX: NZM) assets with the company listing on both the NZX and the ASX on Monday.

NZME – which has assets including the New Zealand Herald and six regional daily papers, the NZME radio network and e-commerce and digital classified sites GrabOne, HeraldHomes and driven.co.nz – saw its share price open at 90c at 2pm on Monday and closing at 77c, further dropping to 71c by close yesterday.

Meanwhile APN News & Media (ASX: APN) shares dropped from $4.33 at open on Monday to $3.99 at 2pm when the NZME shares listed, further dropping to $3.87 by close yesterday.

NZME and Fairfax New Zealand are currently in the midst of seeking approval to merge their assets in NZ.

While APN do not comment on fluctuations in its share price, a spokesperson said: “The demerger of NZME is expected to facilitate greater market recognition of value for both businesses over time.”

Miranda Ward

Miranda Ward worked for Mumbrella from 2013 to 2017, eventually becoming deputy editor. Miranda joined Mumbrella in September 2013 from Sky News.

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topics APN News & MediaASXNZMEshares

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