The prospectus for the sale of the third tranche of Telstra shares, known as T3, was released yesterday.
The federal government's $8 billion share sale will allow retail investors to buy shares for $2 upfront and receive three dividend payments before having to pay the balance.
The second installment will become due in 18 months and pricing will be determined by demand.
Existing shareholders have been invited to participate in the biggest equity offering in Australia since T2.
Telstra shares have slumped more than 50 percent since T2 in 1999.
The shares not sold by the government in T3, about $15 billion worth, will be transferred to the Future Fund which will hold the stock in escrow for two years.