Real estate business Domain has officially listed today, opening at $3.80 per share. Giving it a market cap just shy $2.2 billion.
It was a memorable moment for the newly listed company, one shared with previous parent company Fairfax Media Ltd [ASX:FXJ]. As reported by The Australian:
‘Fairfax boss Greg Hywood and Domain chief executive Antony Catalano marked the occasion at a bell ringing ceremony at noon today.
‘“This is a historic day for Domain and the Fairfax Group,” Catalano told the dozens gathered at the Australian Stock Exchange in Sydney, thanking his staff and family for their support through the “nerve wracking” process of separating the two media companies.
‘“This is the most nervous I’ve ever been in my life,” he said.
‘Catalano thanked Hywood for backing his vision for Domain, saying the chief executive was “the only person I know who understands the transactional business that funds this thing called journalism”.’
While it was all smiles and celebrations, Fairfax’s share price has taken an expected hit. Currently down 30%. With the company now only controlling a 60% stake, and the remaining 40% split amongst Fairfax shareholders.
Fairfax shareholders can expect one Domain share [ASX:DHG] for every 10 shares they own in Fairfax.
The next six months will be telling as to whether the move will pay-off or not. Either way, shareholders will likely be pleased with today’s result.
And according to Money Morning’s own Terrence Duffy, Domain could be looking at a bright future. His research suggests that the time to buy Aussie real estate is now. For all the details, check out his findings here.
Junior Analyst, Money Morning