Strong interest in shares of Mighty River Power in Privatization IPO
Within the first hours of a pre-registration period, more than 35,000 New Zealanders have registered their interest to buy shares in the 49% privatization of New Zealand energy company Mighty River Power.
The New Zealand government has wasted no time after the court ruling on Maori claims, as reported previously and has now put 49% of Mighty River Power up for sale in a partial privatization.
With the sale of shares in Mighty River Power, and two other energy companies, as well as national flag carrier Air New Zealand, the country aims to raise between US$4.1 and $6 billion.
Within the first few hours of a three-week pre-registration period more than 35,000 New Zealanders have registered, or as described with at times around 5 registrations per second.
The plan is that 85-90% of the company’s shares to remain in the hands of domestic investors and the government remain a majority shareholder.
Pre-registration will allow interested individuals to be allocated up to 25% more shares and a minimum share parcel of NZ$1,000.
The actual offer period will then open in the middle of April and run for three weeks. Share pricing and allocation will then be decided by government ministers, with a share listing to happen before May 16, 2013 in time for the government’s budget allocation for 2013-2014.
Source: Fox Business