Domain hits stock exchange with near $2.2 million valuation

Listing at noon yesterday, Domain shares opened at $3.80.

The stock traded as high as $3.98, before finishing the day at $3.69, reflecting a near $2.2 million valuation. 

Fairfax Media shares fell 30% to 74¢, due to the loss of a 40% stake in the Domain business that has been given to the publisher's shareholders. 

Fairfax Media, including its 60% stake in Domain, is now worth $1.7 billion, but when excluding Domain, the market is valuing the Fairfax rump at about $400 million.

On its second trading trading day Domain (DHG) was trading at $3.75.

The spin-off, long mooted, but first announced in February, saw Fairfax's existing shareholders given one Domain share for each 10 shares they own in the longtime publisher.

Fairfax returned to its spinoff plans after US private equity firms TPG and Hellman & Friedman dropped out of bidding for the publishing group in July.

TPG Capital had lobbed a $2.76 billion bid.