12 Dec 2011

Trade Me lists on stock exchanges this week

7:22 am on 12 December 2011

Trade Me will list on the New Zealand and Australian stock exchanges on Tuesday, in what will be considered a welcome if fleeting distraction from the focus on the turmoil engulfing Europe.

Its owner Fairfax Media is selling a third of the internet auction site with shares priced at $2.70 each - raising $364 million to help repay debt and valuing Trade Me at more than $1 billion.

Hamilton Hinden Greene director Grant Williamson says interest in the stock had been high, but its listing comes at a difficult time for equity markets.

He says there has been very good demand and investor interest in the Initial Public Offering for Trade Me.

Mr Williamson says he would expect the stock to list reasonably well but it will come down to the general state of the market at the time of listing.

He says in recent weeks and months there's been a lot of volatility on the market.

Mr Williamson says it's one of the largest listings there's been in recent times and it will be a very welcome addition.

Trade Me is forecasting a profit of $65 million in the year to June on revenue of $145 million, and $68.5 million the year after, with revenue at $154 million.

Its shares will trade under the ticker code T-M-E.