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

 


Meridian raises $1.88b

Meridian raises $1.88b – NZ’s largest retail investment in an IPO
Meridian shares have been priced at $1.50, raising an immediate $1.256 billion from the first instalment payment with an additional $628 million to come from the second instalment in 18 months, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

“Meridian will be 86.5 per cent owned by New Zealanders when the company lists on the NZX Main Board next Tuesday, counting the Government’s remaining 51 per cent shareholding. This meets the 85 to 90 per cent New Zealand ownership target set by ministers.”

Based on the full $1.50 share price, the Meridian offer is the largest investment in an initial public offering by retail investors in New Zealand.

“The $1.88 billion that will be raised by the Meridian share offer is a real boost for New Zealand’s capital markets and our economy,” Mr English says.

With more than 62,000 shareholders, Meridian will have the third largest share registry on the NZX, behind Mighty River Power and Contact Energy.

“Meridian has attracted a different mix of investors than we saw with Mighty River Power earlier this year,” Mr English says. “While demand was strong and broad based, overall we saw fewer retail investors bidding for larger parcels of shares.”

Mr Ryall says the $1.88 billion raised from Meridian’s two instalment payments will be allocated to the Future Investment Fund and will be used to invest in the Government’s infrastructure programme.

“Combined with the $1.7 billion in proceeds from the Mighty River Power offer, this will be $3.58 billion over two floats which the Government does not have to borrow to reinvest in new, priority public assets.

“The Future Investment Fund is building new infrastructure around the country and that means jobs for New Zealanders. The Government is delivering on its plan to control debt and successfully set a path back to surplus.

“Scaling of allocations was required across all investor groups, however, New Zealanders were at the front of the queue for shares.

“We have applied a progressive scaling approach to the general offer where larger applications are scaled more than smaller ones.

“Broker firm applications have been scaled on a pro rata basis, as outlined in the Offer Document.

“Overall, 95 percent of retail applications will receive at least 90 percent of the shares they applied for.

“Applications from New Zealand and offshore institutions have also been significantly scaled back. Confirmations of allocations will be sent to institutions over the coming 24 hours.

“Meridian will list on the NZX main board at 1pm next Tuesday with an indicative market capitalisation of $3.84[1] billion, making it one of New Zealand’s largest listed companies,” Mr Ryall says.

Details of the retail allocation policy are attached. The allocation table will allow investors to work out their expected share allocation. All investors who applied in the general offer will be able to confirm the details of their allocations on Friday by calling the call centre (0800 90 30 90) or, if they applied online, visiting the website (www.meridianshares.govt.nz). In addition, an email will be sent on Friday to those investors that provided an email address advising them of their exact allocation. Investors who applied through a broker should contact their broker.


Important Notice
The offer of shares in Meridian Energy Limited (“Meridian”) was made by the Crown on the terms and conditions set out in a combined investment statement and prospectus dated 20 September 2013, as amended on 27 September 2013 (the "Offer Document").
An application has been made to NZX Limited ("NZX") for permission to list Meridian, and to quote initially the instalment receipts and then later Meridian's shares on the NZX Main Board and all requirements of NZX relating thereto that can be complied with on or before the date of this document have been duly complied with. However, NZX accepts no responsibility for any statement in this document. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.
Meridian's shares and the instalment receipts have not been and will not be registered under the United States Securities Act of 1933 (the "United States Securities Act") or the securities laws of any state of the United States and may not be offered or sold in the United States except in accordance with an exemption from, or in a transaction not subject to, the registration requirements of the United States Securities Act and any applicable state securities laws.

Meridian share offer – at a glance

23 October 2013

Share price $1.50

First instalment price (paid at share offer) $1.00

Final instalment price due in May 2015 50 cents


Proceeds

Proceeds of first instalment $1.256b

Expected proceeds due from final instalment (May 2015) $628m
Total proceeds to Crown from Share Offer $1.88b


Ownership

Total NZ ownership (incl 51% Crown) 86.5%

Individual New Zealand shareholders 62,000
(provisional subject to settlement)


Retail investors

Retail investors (first instalment) $749m

Proportion of shares on offer 59.7%

Institutional investors

NZ institutions (first instalment) $160m (12.7%)

Offshore institutions (first instalment) $347m (27.6%)

Note: numbers are provisional until settlement



General Offer applicants – scaling policy

Given the strong level of demand, progressive scaling has been applied. This means that larger applications are scaled more than smaller ones.

Overall, 95 percent of retail applications will receive at least 90 percent of the shares they applied for.
New Zealand retail applications

How your application will be scaled:
You will receive:
First $2,500
The full amount you asked for
From $2,501 to $10,000
90% of what you asked for
From $10,001 to $15,000 85% of what you asked for

From $15,001 to $20,000 75% of what you asked for
From $20,001 55% of what you asked for


Individual investors will receive confirmation of their allocations from Friday 25 October 2013.

Broker firm applicants – scaling policy

Broker firm applications have been scaled on a pro rata basis, as outlined in the offer document. Broker firm client allocations have been scaled back by 10%.

________________________________________
[1] Calculated as the number of shares on issue following the offer multiplied by the final price of $1.50.

________________________________________

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system.

The new model involves a new government-owned company taking over the operation of the payroll service, and Talent2 licensing the core Alesco software to that company.

The settlement provides for Talent2 to pay the Ministry between $18 million and $22 million, made up of $7 million in cash and other considerations including a license for the Alesco software and discounted fees for the support and maintenance of this software. More>>

 

Parliament Today:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Valedictory Season: Maori Party Founders Say Goodbye

Two major Maori MPs gave there farewell speeches to Parliament Thursday outlining their history, experiences, triumphs and regrets. More>>

ALSO:

Resignation Not Accepted: Transport Minister Breaches Aviation Security Rules

"Running late for a plane at Christchurch Airport, I without thought breached airport and airline security rules by entering the gate lounge through a door usually used for exit only..." More>>

ALSO:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news