Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Genesis Energy soars on debut, other gen-taliers rise

Genesis Energy soars on debut, leading fellow energy companies higher

By Suze Metherell

April 17 (BusinessDesk) – Shares in the partially privatised Genesis Energy soared 18 percent at their debut listing on the NZX this afternoon, buoying other listed energy companies in the process.

Genesis climbed 27.5 cents to $1.825 after listing, giving holders of the 49 percent that was sold an immediate gain of about $135 million. Heavy public interest in the last chapter of the government’s partial privatisation programme briefly crashed the NZX website within half an hour of the listing.

Fellow state-controlled gentailers Meridian Energy and MightyRiverPower also advanced after the listing, rising 1.7 percent to $1.175 and 0.9 percent to $2.205 respectively. Contact Energy, which was fully privatised in 1999, gained 1.6 percent to $5.59 while Infratil-controlled TrustPower gained 0.5 percent to $6.48.

“What it has done is created demand for other electricity generators listed on the market as well,” said Grant Williamson, director at Hamilton Hindin Greene. “It’s a very nice premium for investors who have got shares.”

Williamson expected the share price to take two weeks to settle, as supply and demand for the stock evened out.

“Certainly looking at the future dividend yield and such like the stock still doesn’t look that expensive even at these levels,” he said. “There will be good interest in the shares particularly from income investors.”

Speaking at a listing ceremony at the NZX headquarters in Wellington, Finance Minister Bill English said
“taxpayers get a good deal and we believe we’ve got a pretty good deal across the whole programme”, referring to the four asset sales over the last 13 months, which have raised a total of $4.7 billion.

“We went to the market where $1.55 was a better price than expected but markets shift,” said English. “We’ve had different experience with Meridian and again with MightyRiverPower.”

While Meridian shares are trading above their $1 a share issue price last November, MRP shares are still nearly 30 cents below their listing price last May of $2.50 a share.

Green Party co-leader Russel Norman said the Genesis price stag showed taxpayers had “missed out on an additional $130 million of revenue by the National Government mispricing Genesis Energy.”

The sale of 49 percent of Genesis raises $733 million and the company is the last of three vertically integrated electricity generator-retailers to be subject to partial privatisation in the last 13 months.

The IPO process attracted 68,000 retail investors, giving the stock the third largest share register among NZX-listed shares. Meridian Energy drew 62,000 shareholders while 113,000 people bought into MRP, the first IPO of the government’s programme.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news