Telstra shares list across Tasman today

CANBERRA - The third tranche of Telstra shares ("T3") began trading on the Australian Stock Exchange this morning after the sale was priced at the weekend.

The federal government announced the share price yesterday amid surprise at the strength of interest in the telecommunications company.

About A$15.5 billion ($18.13 billion) will be raised through the sale of about 35 per cent of the company. The government held 51.8 per cent before the latest sale.

Finance Minister Nick Minchin said T3 was the second biggest share offer in Australian history behind T2.

Institutional investors will pay A$3.70 a share and retail investors are paying 10c a share less. The shares list at 11.30am Australian time.

The prices were only cents below the expectations of market analysts who predicted a figure of about A$3.75, the same price existing Telstra shares closed at on Friday.

- AAP