Fairfax prices Trade Me IPO

Fairfax Media (ASX:FXJ) has priced the IPO for New Zealand auction and classified site Trade Me at NZ$2.70 ($2.14) per share.

The publishing group expects gross proceeds of NZ$529.5 million ($420.5 million) from the float of 34% of Trade Me on the New Zealand exchange.

In a statement, Fairfax said the price had been set “after receiving strong support from New Zealand and Australian institutions” for the offer.

The company also revealed it has signed UBS New Zealand to be underwriters of the deal, and that it expects to lodge an IPO prospectus with New Zealand and Australian regulators by Thursday.

Fairfax first started laying the groundworkfor the Trade Me IPO in August, declaring business big enough to function as a separate entity.

At the time, the parent suggested it may pursue a secondary listing for the unit on the ASX in the future.

FXJ shares fell 3.23% on Tuesday to $0.900.