A float of that size will provide a much-needed boost to the NZX which has been crying out for new listings in recent months.
Documents obtained by the Otago Daily Times show solid growth in both revenue and operating earnings since Fairfax clinched the deal to buy Trade Me from entrepreneur Sam Morgan.
Sources say that Fairfax will wait until after the Summerset float, announced earlier this week, before deciding on the timing for the float of Trade Me.
Timing will depend on market conditions and the success of Summerset.
However, Trade Me will be a popular float with "mum and dad" investors, because they understand the company through using it themselves.
The documents show that Trade Me has more than 2.8 million registered members and a million members logged in during the past month.
In 2010, more than one million people bought or sold something on Trade Me, there were more than 650,000 visitors each day, more than two million emails were sent each day and there were 20,000 message board posts daily.
Brokers say that Trade Me is a growth stock but also has defensive qualities.
The documents show the trademe.co.nz site has more market awareness than facebook.com, google.co.nz, some media sites and hotmail.com.
Revenue has risen from $60.5 million in 2007 to $128.8 million in 2011.
General items make up the largest proportion of the revenue at $61.5 million, followed by classified - including motors, property and jobs - contributing $44.7 million.
Other revenue, which comes from advertising, new businesses in group buying, travel and personals, contributed $22.6 million.
Earnings before interest, tax, depreciation and amortisation have risen from $48.5 million in 2007 to $88.8 million last year and $96.6 million in 2011, with this year's figures reduced by $600,000 to adjust for a non-recurring gain on a sale.
The company listed risks to its business as: brand and reputation damage; technology and security failures; ability to retain and attract new talent; increased competition from existing market models and disruptive models; adverse macroeconomic and industry conditions; introduction of adverse regulations; and changes in consumer tastes and preferences.
Trade Me says it has identified three areas from which it will seek to continue its track record of growth - industry growth, growing the existing platform and entering new markets.
For industry growth, the company is looking at the Government's ultrafast broadband initiative and the increasing use of new devices such as smartphones and tablets.
The existing platform growth could be by a migration to more online display advertising, where New Zealand lags behind other developed countries, the company said.
Trade Me was also looking at online retailing as an area of growth, with forecast annual growth of 12.5% forecast for the 2011 to 2013 period. Again, figures in the documents showed New Zealand lagging behind Australia, the United States and the United Kingdom.
Trade Me said it had the proven expertise to leverage into new markets as opportunities arose.
Those opportunities could include restaurant online services, logistics, offshore expansion, insurance and financial services.
Brokers said Trade Me's technology platform was a key part of its expected growth.
