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.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news