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.
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.”
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