Property Exchange Australia will list as a company worth $3.3 billion if it heads to the boards and raise $1.17bn.
The business is subject to a float or a trade sale and a cornerstone bookbuild was being held Friday night as competition heats up for the electronic property settlements operation.
Shares were being offered at $17.13 each.
The valuation equates to 26.1 times its forecast earnings before interest, tax, depreciation and amortisation including debt.
The $1.17bn IPO includes a $961m secondary selldown and a $216m primary issuance.
Morgan Stanley Infrastructure Partners will sell all of its 38.6 per cent in the float, according to a term sheet sent to investors on Friday night.
Commonwealth Bank of Australia and Link have both bid for shares in the cornerstone bookbuild and their post IPO interest will be increased from the new shareholders allocation.
Link, which owns 42.6 per cent, will own 42 per cent of the business once listed while the CBA holding will increase to 17.4 per cent from 15.3 per cent.
Management owns the remainder.
The company will head to the boards on July 6 should it not be sold to a bidder.
Barrenjoey Capital Partners, Macquarie Capital, Morgan Stanley and UBS are working on the listing.
The bookbuild comes after Kohlberg Kravis Roberts with the Nine Entertainment-backed Domain Holdings Group launched a bid that values the business at $3.1bn on Thursday.
The approach, which would see it acquire more than 80 per cent of the business owned by Link Administration Holdings and Morgan Stanley Infrastructure Partners was set to expire at the weekend and be followed by a similar offer from competition rival Dye and Durham.
The strongarm tactic could accelerate a sale of Pexa.
Pexa is in demand amid an environment of low interest rates and a booming property market and part of the business was placed up for sale by Link after it received a $2.9bn buyout proposal from The Carlyle Group and Pacific Equity Partners earlier.
The thinking is that bidders will likely come back with offers that trump the IPO price over the weekend.
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