News: LNK Australia realty firm PEXA raises $907 bln in IPO; Morgan Stanley sells out

Australian online realty firm PEXA has raised $907 million in an underwritten initial public offering, the country's largest this year, two people briefed on the matter told Reuters on Saturday.

Morgan Stanley Infrastructure Partners has sold its 40% stake in the country's biggest online property registry business, the sources told Reuters.

They asked not to be identified because details of the deal are not yet public. It will be announced in coming days, they said.

PEXA shares were priced at A$17.13 each, valuing the company at A$3.3 billion, the sources said.

PEXA declined to comment. Representatives from Morgan Stanley did not immediately returned emails seeking comment.

Australian-listed shareholder register firm Link Administration Holdings Ltd (LNK) owns 44% of PEXA and will increase rather than sell down its stake via the IPO, the sources said.

Link had been running a process to sell its stake in PEXA or IPO the business. A process that attracted bids from private equity firms such as Carlyle Group CG.O and Pacific Equity Partners for Link itself were unsuccessful.

Private-equity giant KKR & Co KKR.N this week made a competing bid to buy PEXA valuing the group at "A$3 billion plus". The offer was conditional on Link's board making a decision by Sunday afternoon.

Morgan Stanley MS.N , Macquarie Group (MQG) , UBS and Barrenjoey have underwritten the A$1.177 billion fund-raising, the sources said.

Commonwealth Bank of Australia (CBA) , a PEXA shareholder that has the largest share of mortgages in the country, will increase its holdings to 17% from 14%, the sources said.

Representatives from Commonwealth Bank and Link did not immediately returned emails seeking comment.

PEXA, which is in the holding company Torrens Group Holdings, holds about 80% of the addressable market in Australia. ($1 = 1.2965 Australian dollars)