The National Broadband Network (NBN) primary player Telstra Corporation Limited (ASX: TLS) disclosed plans of selling its shares in SouFun Holdings.

The online real estate company SouFun has filed an initial public offering (IPO) of American Depositary Shares (ADS) with the US Securities and Exchange. The ADS represents Class A ordinary shares of SouFun.

The IPO price of Telstra's Chinese subsidiary in the real estate business SouFun is between $US810 million to $US850 million. The specific price range for each ADS will be ranging from $US40.50 to $US42.50. The IPO is set to be completed by September 30, 2010.

The buying price of the SouFun shares was $US254 million ($A278.88 million) in 2006. Telstra will sell 50.5 percent of the shares it bought.

Fluctuations in the currency exchange rate would be affecting the loss or earnings from the sale of SouFun. The Chinese company is the number one real estate website in mainland China. Over 44 million potential property investors visit the Soufun website each month.

Shareholder Telstra, on the other hand, is the prime mover of the NBN. The telecommunications firm struck the $11 billion deal with the Federal Government in June 2010.

The agreement covers access Telstra infrastructure ($9 billion of the deal), the setting up of a new company to take care of structural separation issues ($2 billion), and Telstra assistance in retraining and redeployment of staff involved in the changes ($100 million).