Sharechat Logo

NZ government scales back larger scale applications in Genesis Energy float

Wednesday 16th April 2014 1 Comment

Text too small?

The government will progressively scale down applications for large shareholdings in Genesis Energy ahead of tomorrow's listing after the final partial privatisation in the current programme attracted 68,000 investors.

The scaling policy will cap general applications at $5,000, or 3,226 shares, and the government cut the broker allocations by 20 percent to meet the demand, Finance Minister Bill English and State Owned Enterprise Minister Tony Ryall said in a statement. Investors seeking up to 1,613 shares will get the full amount and those wanting between 1,613 shares and 3,226 shares will get the first 1,613 and 28.75 percent of the rest they asked for.

Investors wanting between 3,226 shares and 26,226 shares will receive the first 2,076 then 5 percent of that they asked for beyond 3,226 shares, and those wanting more than 26,226 shares will be capped at 3,226 shares.

The initial public offer attracted more interest than Meridian Energy, which drew 62,000 shareholders, though was less than the 113,000 people who bought into MightyRiverPower, the first IPO of the programme. New Zealand retail investors will end up with 26.7 percent of the company, local institutions with 10 percent, foreign institutions with 12 percent and participating iwi with 0.3 percent. The Crown will hold the balance of 51 percent.

Genesis will list tomorrow at $1.55 a share, after a sale that raised $733 million for the government, taking the total proceeds from the mixed ownership model programme to $4.7 billion.

Four of five independent research reports valued the shares above the offer price, which is seen as providing a strong dividend yield to investors.

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

On 17 April 2014 at 12:47 am J Fraser said:
interesting that pple that applied for shares through their broker will be scaled back by 20% only, while everyone else will get 100% of the 1st $2500, and only 28.75% any amount above $2500 up to a maximum of 3,226 shares, isn't more expensive for the government to sell shares through brokers than through the open offer?
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:

Further COVID-19 Restrictions at SkyCity’s New Zealand Properties
FY20 results guidance met, Results date, Banking Facility
Sky sells OSB assets to NEP NZ, secures 10 year partnership
NZX fully operational - announcement re COVID-19
Heartland Market Update
Steel & Tube Fy20 Trading Update
Further Contract Win Strengthens Scott Technology’s Position In Mining Sector
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
TruScreen strengthens its market presence in central and eastern Europe

IRG See IRG research reports