Fairfax Media Ltd will raise $NZ363.4 million ($A280.54 million) in equity from the initial public offer of New Zealand auction and classifieds site Trade Me Group.

Fairfax said, in a statement on Tuesday, the offer price of $NZ2.70 per share had been set, with 134.6 million, or 34 per cent, of Trade Me’s shares to be sold.

The company had entered an underwriting agreement with UBS New Zealand following the completion of a bookbuild to institutional investors on Monday.