Fairfax stock has tanked prior to Domain’s debut on the Australian Securities Exchange (ASX) today.
Fairfax (ASX:FXJ) was trading at $1.07 late Wednesday but has since jumped off a cliff and, at the time of writing, is 70 cents (-34%).
Earlier this month, Fairfax shareholders overwhelmingly voted in favour of spinning off Domain into a separately listed entity.
Fairfax has retained a 60% interest in Domain and shareholders have the other 40%. They receive one share in Domain for every 10 Fairfax shares owned and retain their existing Fairfax shares.
In July, U.S. private equity firms TPG and Hellman & Friedman took a look at Fairfax’s books and passed on the opportunity to buy the media giant.
Fairfax posted a net profit of $83.9 million for the 2017 Financial Year. Revenue fell in the newspaper and radio businesses, but Domain’s revenue rose by 8.1%.
Fairfax’s share price went up 15 cents in the month leading to the decision to spin-off Domain but has now plunged.
Domain is scheduled to commence trading on the ASX at 12pm Thursday under the ticker code “DHA”.