113,000 New Zealanders will become shareholders in Mighty River Power following a successful share offer, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.
The final price will be $2.50 per share.
Of the shares issued, 86.5 per cent will be New Zealand owned: 26.9 per cent by New Zealand retail investors, 8.6 per cent by New Zealand institutions and with the Crown retaining a majority 51 per cent shareholding. That leaves 13.5 per cent for overseas institutions.
“This is an outstanding result and fulfils our commitment to ensuring at least 85-90 per cent New Zealand ownership of the company,” Mr English says.
“The share offer will raise $1.7 billion, which is a very good return for New Zealand taxpayers. Those proceeds will go into the Future Investment Fund, allowing the Government to control debt while continuing to invest in public assets. More details will be announced in next week’s Budget.
"The Government has achieved all of its objectives for the Mighty River Power share offer, so the company will list on Friday.
“Given the strong response to the share offer, and the price we have set, Mighty River Power will have a market capitalisation of $3.5 billion.
“And with over 110,000 New Zealand shareholders, it will have the largest share register – by some margin – of any New Zealand company on the exchange.”
Whilst the Government would doubtless have hoped to raise more than $1.7b from the MRP sale, the scaremongering by Labour and the Greens has obviously taken a toll. It was galling last night to see several Green MP's including the co-leaders gloating at having forced the share price down and having scared potential investors away. Who do they think they are? And do they actually care that they are damaging the New Zealand economy?
The NZ Power announcement was carefully timed to damage the MRP share float. That over 100,000 people, 68% of whom are new to investing in the stock market have like us, put their money where their mouth is shows that not everyone was scared off by the cynical political game being played by David Shearer and likely as not engineered by Russel Norman.
Bring on the sale of Meridian Energy; we'd like to get a small piece of that action as well.