Fairfax shareholders have approved the float of Domain

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The separate ASX listing of Domain has been approved by Fairfax Media shareholders as a way of extracting full value from the online property classified business.

The new company, with current Fairfax shareholders getting one Domain share for every ten Fairfax shares they hold, is expected to start trading on November 16.

No capital is being raised and Fairfax, the publisher of The Age, the Sydney Morning Herald and the Australian Financial Review, is retaining 60% of the shares.

Domain CEO Antony Catalano said: “This is a tremendous achievement for everyone at Domain. Thank you to the many people involved in the separation process. Everyone at Domain is excited to be part of this next step in Domain’s continuing success.”

The vote in favour of the float was 99.89% in favour.

Domain has grown revenue at a 28% compound annual growth rate over the past three years. In 2017, it delivered revenue of $320 million.

Fairfax Media in August reported a net profit of $83.9 million for the 2017 financial year, a turnaround from last year’s $772.6 million loss when the company wrote down the value of its newspaper mastheads by $989 million.

(Disclosure: Allure Media, the publisher of Business Insider, is 100% owned by Fairfax Media.)