Mr Brown, who engineered the pounds 210m buyout of the group from Reed International, will be worth about pounds 4m through the deal. He will, together with five other senior management, own roughly 5 per cent of the company after the flotation.
Newsquest, which owns 173 newspapers, including the world's oldest newspaper, the Berrows Worcester Journal, will be valued at around pounds 500m.
City analysts were divided over whether Newsquest had chosen the right climate to come to the market. Some brokers have forecast a sharp downturn in advertising revenue which would hit regional newspaper stocks hard. However, Derek Terrington, media analyst at Teather & Greenwood, said there was no substance to such fears. Newsquest was well-placed to expand in an industry which had been consolidating over the last 18 months.
Mr Brown said Newsquest would "have to take a look" if United Provincial Newspapers came on the market.
Kohlberg Kravis Roberts which backed Newsquest's management buyout and owns a 73 per cent stake will retain around 40 per cent of the business after flotation.Reuse content