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Genesis shares priced at $1.55

Genesis shares priced at $1.55 – majority available to NZ retail investors

New Zealanders have the opportunity to buy the majority of available Genesis Energy shares when the offer opens to retail investors tomorrow morning, after the successful completion of the bookbuild.

The Genesis shares have been priced at $1.55 each, meaning total proceeds from the offer will be up to $736 million. Already, $620 million has been committed through the bookbuild, which was the first stage of the share offer.

Based on the final price per share, the prospective 2015 financial year implied gross dividend yield is 14.3 per cent.

New Zealanders have been put at the front of the queue for shares. Up to 55 per cent of the Genesis share offer is expected to go to individual New Zealand retail investors - including loyalty bonus shares, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

“From tomorrow, New Zealanders can apply for these shares in three ways; via a sharebroker, online or by using the paper application form accompanying the Investment Statement,” Mr English says.

“To encourage New Zealand participation, New Zealanders who buy shares and hold them for 12 months in the same name from allotment date (expected to be 16 April 2014) will be eligible for one loyalty bonus share for every 15 shares they hold, with a cap of 2000 bonus shares,” Mr English says.

“At the final share offer price, Genesis will have an indicative market capitalisation of $1.55 billion,” Mr English says.

“We have again delivered on our New Zealand ownership commitment, with Genesis expected to be 88 per cent New Zealand owned when it lists on the NZX main board on 17 April. The Crown’s retained shareholding will be at least 51 per cent when the general offer closes on 11 April,” Mr English says.
Mr Ryall says the Government’s share offer programme has met every objective set by ministers.

“We will raise up to $4.7 billion dollars from the four share offers. This is within the Treasury’s latest estimate of between $4.6 billion and $5 billion across the entire programme.

“These proceeds are available to be invested in new public assets such as schools, hospitals and ultra-fast broadband without having to borrow more from overseas lenders.

“Of the expected total proceeds raised in the share offer programme, up to $2.6 billion – or 55 per cent of the proceeds – will have been invested by individual New Zealand retail investors.

“Each of the four sales will be completed with more than 85 per cent New Zealand ownership, delivering on the commitment we gave to New Zealanders in 2011 and demonstrating local confidence in investing in home- grown Kiwi companies.

“The programme has also provided a significant boost to New Zealand’s capital markets. The three energy company IPOs have added more than $8.85 billion in capitalisation to the NZX main board,” Mr Ryall says.


Important notice: The offer of shares in Genesis Energy Limited (“Genesis Energy”) is made by the Crown on the terms and conditions set out in the investment statement and the prospectus for the offer. The offer is not yet open. When it opens, applications for shares must be made on the application form accompanying the investment statement. The Crown does not guarantee the shares in Genesis Energy. An application has been made to NZX Limited ("NZX") for permission to list Genesis Energy, and to quote Genesis Energy'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 advertisement have been duly complied with. However, NZX accepts no responsibility for any statement in this advertisement. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.

Genesis Energy share offer next steps and indicative dates
• General Offer Closes 5pm 11 April
• Brokers allocate shares to New Zealanders Complete by 5pm 14 April
• Shares allotted 16 April
• Genesis listed on NZX Main Board 17 April
• Expected first dividend payment October 2014
• Loyalty Bonus Share allotment expected around 16 April 2015

Genesis Energy share offer – bookbuild at a glance

Final share offer price $1.55

Prospective FY2015 implied gross dividend yield 14.3 per cent

Expected percentage total New Zealand ownership at listing 88 per cent


Expected share offer proceeds
(Proceeds remain subject to the number of shares sold through the General Offer)

Expected maximum proceeds from share offer $736 million


Expected share offer allocations
(Final allocations remain dependent on the number of shares sold through the General Offer)

Shares on offer for New Zealand retail investors 55 per cent

Shares on offer allocated to New Zealand institutions 20.5 per cent

Shares on offer allocated to offshore institutions 24.5 per cent


Government share offer programme at a glance

(Remains subject to the number of shares sold through the Genesis general offer)

Total expected proceeds $4.7 billion
Total investment by New Zealand retail investors $2.58 billion
Total investment by New Zealand institutions $0.85 billion
Total investment by offshore institutions $1.24 billion

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