Telstra launches IPO for SouFun stake

Stuart Corner
Friday, 03 September 2010 11:30

IT Industry - Listed Tech

Telstra has filed a registration and preliminary prospectus for an initial public offering of American Depositary Shares (ADS) in its Chinese web property, SouFun, 50.5 percent owned by Telstra.

The registration statement contains an indicative price range per ADS of $US40.50 to $US42.50, which would value SouFun at between $US810m to $US850m, immediately prior to the IPO.

Telstra announced plans for the IPO on 13 August 2010 saying it intended to selli its entire shareholding in SouFun, purchased in 2006 for $US254m. It expects to complete the IPO by 30 September.

Two private equity firms (General Atlantic and Apax Partners) and two existing shareholders of the parent company, SouFun Holdings, have agreed to purchase any remaining shares of SouFun held by Telstra that are not sold in the IPO.