Sharechat Logo

Mums and Dads will pay $1.60 at most for Meridian shares

Friday 20th September 2013

Text too small?

Meridian Energy shares are likely to list at between $1.50 and $1.80 apiece, but the highest price a retail investor will pay if they buy shares in the float will be $1.60, according to the offer documents released this morning.

The low end of that range gives Meridian a market capitalisation of $3.8 billion and the top end puts it at $4.6 billion, meaning the government can expect to raise between $1.9 billion and up to $2.3 billion from the sale of a minority 49 percent of the shares in its largest electricity company.

New Zealand resident retail investors - the so-called 'Mums and Dads' - are being enticed to participate by being offered the opportunity to pay $1 per share as a first instalment and the balance, up to 60 cents a share, in May 2015.

That transforms the forecast yield of 8.4 percent in the 2014 financial year and 9.2 percent in the 2015 year to a 13.4 percent gross yield in the first 12 months of ownership.

(BusinessDesk)

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pushpay buys Colorado rival for US$87.5m
Xero chair to retire early as family’s health comes first
Business leaders quiz finance minister on capacity to spend $12b
House prices are accelerating again, even in Auckland
13th December 2019 Morning Report
Tourists still coming but growth is slowing
Peters backs StuffME merger bid
Supplements, skincare firm poised for reverse listing
NZX, EEX eye carbon auction opportunity
A2 Milk boss steps down, shares fall 7.7%

IRG See IRG research reports