The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OfficeStaff WriterWed 15 Nov 17

Domain Makes Solid ASX Debut with $2.2 Billion Valuation

AC1

The long-awaited Australian Securities Exchange listing of real estate classified and services business Domain (ASX:DHG) on Thursday saw the business commence trading at $3.80 with a market capitalisation of nearly $2.2 billion.

Whilst shares were trading higher initially after the listing, Fairfax Media shares nose-dived by 30 per cent to around 75 cents reflecting the loss of 40 per cent ownership of Domain as a de-merged entity.

Citi and Credit Suisse had a valuation of $3.50 and $3.52 on Domain respectively.

Fairfax’s shareholders when the spin-off was announced early this year were given one Domain share for each 10 shares they owned. Fairfax is keeping the remaining 60 per cent of the company.

[Related reading: Fairfax Media to Spin Off Domain as a Separately Listed Entity]Fairfax Media chairman Nick Falloon said at the time: “This strategic initiative arises from the Board’s determination to maximise returns for Fairfax shareholders from Domain Group, which is positioned for strong long-term growth.

“Domain is well placed as it continues to strengthen its platform and position itself at the centre of Australia’s real estate ecosystem. By building on its core strength as a listings business, Domain is capturing new revenues from all aspects of people’s involvement with property.”

Fairfax originally bought 50 per cent of Metro Media (now Domain, which was Fairfax’s original print classifieds business) in 2011 for $35 million. Metro Media was established by Antony Catalano who is now Domain’s chief executive officer. Fairfax later acquired the balance of the company for cash and shares.

Fairfax chief executive Greg Hywood said Thursday's listing was a result of a strategy of investment and the use of the publisher's traditional assets to drive growth.

"Domain offers exposure to favourable trends in the Australian real estate market, but with relatively low exposure to real estate price risk," Morningstar analyst Gareth James said in the Australian Financial Review.

"We expect the population of Australia to continue to grow at around 1 per cent to 2 per cent per year for the foreseeable future underpinning a similar growth rate for Australian dwellings.

"Domain should benefit from this trend via more real estate listings on its websites, in addition to strong revenue per listing growth as its websites win a larger proportion of real estate selling costs."

Main image: 

Antony Catalano, Domain's chief executive officer

ResidentialAustraliaFinanceSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
View All >
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
Kangaroo Point Aria Canopy House Revised DA Approval hero
Development

Aria’s Revised Tower Greenlit for Inner-City Kangaroo Point

Phil Bartsch
Hotel

Perth Hotel New Role Revealed After $105m Sale

Lindsay Saunders
The WA government’s acquisition is to become a part of its bid to improve housing supply in the capital...
LATEST
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Kangaroo Point Aria Canopy House Revised DA Approval hero
Development

Aria’s Revised Tower Greenlit for Inner-City Kangaroo Point

Phil Bartsch
3 Min
Hotel

Perth Hotel New Role Revealed After $105m Sale

Lindsay Saunders
2 Min
Warren and Mahoney's rendering of Leftfield's project at 691-693 Burke Road, in Melbourne's Camberwell.
Residential

Leftfield Lifts Cover on 14-Storey Scheme at Camberwell

Marisa Wikramanayake
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/domain-asx-debut-at-2-2-billion-valuation