Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Mighty River Power share offer opens

Hon Bill English

Minister of Finance

Hon Tony Ryall

Minister for State Owned Enterprises

14 April 2013

Media Statement
Mighty River Power share offer opens tomorrow

The Mighty River Power share offer opens for business tomorrow with New Zealanders having three weeks to apply to buy shares.

Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall today confirmed that the share offer will proceed, with Mighty River Power expected to be listed on the stock exchange for the first time on May 10.

“New Zealanders can, from tomorrow, apply to buy shares,” Mr English says. “It is pleasing to have reached this stage in the process. We’ve been through an election, we’ve been through the courts, we’ve had a very positive pre-registration process and now it’s time for New Zealanders who are interested in buying shares in Mighty River Power to actually do so.

“It is important that New Zealanders read the offer document as they consider their investment decision. It has been written to ensure it contains all information that prospective investors need to see, and this was confirmed by the Financial Markets Authority on Friday.”

There’s no rush to apply – New Zealanders should consider this opportunity carefully, and they have almost three weeks to do it, Mr Ryall says.

“The general offer that opens tomorrow is for New Zealand retail investors only. This is part of the Government’s commitment to have New Zealanders at the front of the queue for shares, to encourage widespread ownership, and to have at least 85-90 per cent New Zealand ownership.”

The minimum application is $1,000, and New Zealanders are guaranteed to get the first $2,000 that they apply for, whether or not they pre-registered.

Those who did pre-register may get an allocation preference of up to 25 per cent in the event of over-subscription of the offer, and New Zealanders who hold their shares continuously for two years will also get loyalty bonus shares.

Mighty River Power is the first company within the Government’s share offer programme to offer shares to New Zealand investors. The programme is part of the Government’s wider economic plan to control debt and keep investing in the economy.


“Mighty River Power is a proud New Zealand company, and the Government is confident in its future as a listed company,” Mr Ryall says. “We invite New Zealanders to consider this opportunity to share in it.”


ENDS


MIGHTY RIVER POWER SHARE OFFER – Q&A


14 APRIL 2013


When can I apply for Mighty River Power shares?

You can apply for Mighty River Power shares from Monday 15 April through to 5pm Friday 3 May 2013. Your application and payment (or payment instruction) must be received at the Share Registrar by 5pm 3 May 2013. You need to consider this deadline if you are applying and/or submitting your payment by post.


How can I apply for Mighty River Power shares?

You can apply online or by completing the paper application form in the offer document and posting it to the Share Registrar. When you apply for shares you must also submit your application payment. Payment can be made by authorising a one-time withdrawal from your bank account, or by posting a cheque to the Share Registrar. You should carefully read the application instructions in section 8 of the offer document.


I didn’t pre-register – have I missed out?

No. New Zealanders who didn’t pre-register can still apply for shares, and will be eligible to receive the benefits for New Zealanders ($2,000 guaranteed allocation and the Loyalty Bonus Shares if you hold your shares continuously for two years).


How can I get a hard copy of the offer document?

If you requested a hard copy when you pre-registered, it will be sent to you. Depending on where you live, we expect that you will receive it between Tuesday 16 and Friday 19 April.


If you didn’t pre-register, you can request an offer document by calling 0800 90 30 90. It will be posted to you at no cost.


Or you can visit any branch of the retail sales syndicate and ask for a copy: ASB, ANZ, Craigs Investment Partners, JB Were, First NZ Capital, Macquarie, Forsyth Barr


When can I see an online copy of the offer document?

The offer document is available now at www.mightyrivershares.govt.nz.


Has the offer document changed since it was registered on 5 April? Has the FMA requested any changes?

No. The FMA has requested no changes. The FMA noted in its statement on 12 April that it is satisfied that the offer document contains all of the information that potential investors need to make an informed decision.


How many documents are you printing?

Treasury is printing around 250,000 hard copies. There is capacity to print more if required, but importantly a large number of pre-registrants have indicated a preference to view the document online.


Is the indicative price range the maximum price per share retail investors will pay?

The price range is indicative only. The final price may be within, above or below the indicative price range. It will depend on the demand for shares through the General and Institutional Offers.


How do I know how many shares to apply for if I don’t know the final price per share?

Applications are submitted based on a specified dollar value of shares (i.e. you apply for a dollar value of shares, e.g. $2000 worth of shares. You do not apply for a number of shares). This is not unusual – the same approach was used for the Contact Energy and Auckland International Airport IPOs.


Once the final price has been determined, your application amount will be divided by the final price to calculate the number of shares that you have applied for, rounded down to the nearest whole share. You will not receive a refund of any difference solely due to rounding.


The minimum application size is $1,000 and multiples of $100 thereafter.


New Zealanders are guaranteed to get the first $2,000 that they ask for (and pre-registrants may get up to 25% more, in the event of scaling if the offer is over-subscribed).


Will my application be filled in full?

If the Offer is over-subscribed, applications in the General Offer may be scaled. This means that the dollar amount of shares you receive may be less than the dollar amount of shares you apply for.


Will I get a refund if I don’t receive all the shares I applied for?

Yes. If you don’t receive all of the shares you ask for, you will get a refund of the balance payment without interest, within five business days after the allotment date.


Will retail investors pay more than Institutional investors?

No. All successful applicants will pay the final price per share. Retail investors also receive additional incentives to institutional investors, such as the guaranteed allocation and, if certain conditions are met, Loyalty Bonus Shares.


What incentives are available for New Zealanders?

- A guarantee that applications up to $2,000 will not be scaled. Applications in excess of $2,000 will not receive less than $2,000 worth of shares.

- If the offer is oversubscribed, New Zealanders who pre-registered for the offer may receive up to 25% more shares than that a non pre-registrant that applies for the same amount of shares

- Loyalty Bonus Shares at a ratio of 1 free share for every 25 shares held (up to 200 loyalty shares), for New Zealand applicants who continue to hold their shares in the same registered name for a period of 24 months


When will investors know how many shares they have been allocated?

Allocations are expected to be available from 10 May 2013. Investors who applied on the website will be able to go online from that date and check their allocation using their unique reference number. Investors who did not apply online will be able to confirm their allocation by calling 0800 90 30 90. Confirmation in writing is expected to be sent on 14 May 2013.


How many shares will I get for my guaranteed $2000?

Your share allocation will depend on the final price per share. Based on the indicative price per share, a person would get between 714 and 851 shares for a $2000 application. They would also receive between 28 and 34 additional free loyalty shares if they hold their shares for 24 months. This would mean they would get between 742 and 885 shares (after two years).


Where can I go for investment advice?

If New Zealanders want further advice or information after reading the offer document, they should seek professional advice. There are several options available:


- Talk to an NZX adviser - list available at www.fma.govt.nz

- Talk to an accredited Financial Adviser - list available at www.fma.govt.nz

- Talk to one of the Share Offer’s retail syndicate brokers (ASB, ANZ, Craigs, First NZ Capital, JB Were, Macquarie, Forsyth Barr)


Can I call someone if I have further questions?

If you have questions about the share offer or how to apply, you can call the Mighty River Power Share Offer Information Line on 0800 90 30 90 between 8am to 8pm (Monday to Friday) and 9am to 5pm (weekends and public holidays).


ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Tomorrow’s Speeches By John Key And
Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the Resource Management Act.

Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing, which happens to be another of the government’s most contentious, most ideologically-driven policy packages. Presumably, Key will be trying not to double down on the rhetoric, and thereby leave room for Labour leader Andrew Little to sound like the centrist voice of reason.

Key will have his work cut out, though. More>>

 

Transport: Auckland Looks To Light Rail

The Board of Auckland Transport has called for an investigation into a light rail network, which could relieve traffic congestion on some of the region’s busiest roads. This stems from work in 2012 (the City Centre Future Access study) which responded to a government request to develop a robust and achievable solution for access to the CBD. More>>

ALSO:

RMA: Smith's Claims Don't Match Evidence - Greens

The Motu group’s research into the impacts of planning rules looked at the costs related to housing development but not the benefits of environmental protections and does not recommend significant changes to the RMA to reduce the cost of new house builds. More>>

ALSO:

Gordon Campbell: On The Similarities Between John Key And David Cameron

For years now, David Cameron has been the closest available thing to a mentor/analogue to our Prime Minister, such that Key watchers could be interested in an analysis of Cameron that appeared in the British press over the Christmas break. More>>

Gordon Campbell: On Ian Fletcher Resignation & GCSB’s New Role

It may well be that after being shoulder-tapped in Queensland for the GCSB job, three years of living in Wellington has been enough for Fletcher and his family, given that the pending review of the GCSB would have required an even longer commitment from him. Three years of Wellington’s weather is enough for anyone... More>>

ALSO:

Ian Apperley: $10m Or $100m For New Wellington Council IT System?

I feel a Tui Billboard coming on. I commented the other day that it looked like the Council’s Ninth big project was a potential $100 million plus... The Mayor has responded: “I am reassured by the Chief Executive and by Anthony Wilson that the proposed budget is in the region of $10 million.” More>>

ALSO:

Southern Ocean:
Navy Intercepts Illegal Fishing Vessels

Foreign Minister Murray McCully today put illegal fishing vessels operating in the Southern Ocean on notice and vowed to take action against their owners. “As part of a multi-agency operation, the HMNZS WELLINGTON has intercepted two vessels claiming to be flagged to Equatorial Guinea, fishing illegally in the Southern Ocean.” Mr McCully says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news