The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSING TONIGHT FINAL CHANCE TO GET RECOGNISED FOR YOUR WORK
NOMINATIONS CLOSING TONIGHT | URBAN LEADER AWARDS
NOMINATE NOWDETAILS
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
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
Exclusive

Beyond the Aerotropolis: How Airports are Turning into Cities

Taryn Paris
6 Min
Exclusive

Inside the Strategy Behind Australia’s Largest Direct Real Estate Deal

Phil Bartsch
5 Min
View All >
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
Infrastructure

Fast-Track Funding Clears Way for 13,000 Queensland Homes

Lindsay Saunders
Office

‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

Lindsay Saunders
The deal is widely seen as stabilising one of the Sydney’s most complex and high-profile commercial schemes...
LATEST
Sterling Global 623 Collins Street tower rendering HERO
Development

Sterling Global Greenlit for Melbourne Heritage Highrise

Leon Della Bosca
4 Min
Infrastructure

Fast-Track Funding Clears Way for 13,000 Queensland Homes

Lindsay Saunders
2 Min
Office

‘White Knight’ Cbus Property Takes 50pc Stake in Halo Tower

Lindsay Saunders
3 Min
Industrial

Melbourne Steps Out of Sydney Data Centre Shadow

Lindsay Saunders
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/domain-asx-debut-at-2-2-billion-valuation