Z Energy Ltd shareholders Infratil Ltd & the NZ Superannuation Fund will realise a gross $840 million from their sale of 60% of the fuel retailer at $3.50/share.
The price is the midpoint in the initial public offer range of $3.25-3.75.
Infratil chief executive Marko Bogoievski said yesterday: “We received a strong response from the retail broker network, with their allocations requiring significant scaling. We have also been delighted with the positive response from institutional investors, which we see as a validation of the New Zealand economy, the transport fuels industry and the achievements of Z under our ownership.”
“Our feedback suggests investors have been attracted to Z Energy’s cashflows, dividend outlook & range of potential future growth areas.”
Z will be New Zealand’s first listed transport fuels distribution company and is expected to be among the 20 largest New Zealand companies on the NZX main board. Shares in Z will start trading at 11am on Monday, initially on a conditional settlement basis.
Infratil and the Super Fund bought Z – Shell NZ Ltd’s distribution & retail businesses and 17.1% interest in the NZ Refining Co Ltd – from global energy company Shell in 2010, with each party taking a 50% share. Their remaining shares on listing will be locked in until the release of Z’s results for the half-year to 30 September 2014.
Attribution: Company release.