New Zealand eyes at least USD 1.56bn in Meridian Energy IPO

Sep 20, 2013 - The New Zealand government plans to raise between NZD 1.9 billion (USD 1.56bn/EUR 1.17bn) and NZD 2.2 billion from the sale of a 49% stake in utility Meridian Energy Ltd in an initial public offering (IPO) next month.

According to an official state document, filed on Friday, the offer price for Meridian’s shares has been set at between NZD 1.50 and NZD 1.80 apiece. It is to be paid in two instalments -- an initial sum of NZD 1 per share and a second instalment of NZD 0.50-NZD 0.80 after 18 months. The price for New Zealand mom-and-pop retail investors will not exceed NZD 1.60 per share.

Earlier this week, the energy provider, which operates wind and hydropower plants, said that the IPO on the New Zealand Stock Exchange (NZX) and on the Australian Stock Exchange (ASX) would be completed by October 29, earlier than planned. The retail offer period will be officially open on September 30 and will be closed on October 18. The government previously said it would sell the 49% stake to the public in November.

The proceeds from the sale will be used to cut New Zealand’s public debt and pay for hospitals, schools and roads.

(NZD 1.0 = USD 0.839/EUR 0.620)

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