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Genesis to list with third-largest share register

Hon Bill English
Minister of Finance
Hon Tony Ryall
Minister for State Owned Enterprises

16 April 2014 Media Statement

Genesis to list with third-largest share register

Genesis Energy will have the third-largest New Zealand share register on the NZX when it lists tomorrow, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

More than 68,000 retail investors have been allocated shares in the energy company’s initial public offering – the final IPO in the Government’s share offer programme.

The sale of 49 per cent of Genesis has raised $733 million for the Future Investment Fund, bringing the total proceeds from the share offer programme to $4.7 billion. That money is being spent on other public assets and infrastructure, particularly schools and hospitals, without the need to borrow overseas.

Keen interest in the Genesis offer means scaling has been required across all investor groups including institutions. A progressive scaling policy has been applied to the general offer as part of the Government’s commitment to put New Zealanders at the front of the queue for shares.

“This will see larger applications scaled more significantly than smaller applications,” Mr English says.

“The scaling policy effectively places a cap of approximately $5,000 on all general offer applications.”

“Due to demand in the general offer, the broker firm offer was reduced by 20 per cent, with these shares re-allocated to the general offer.”

At the time of listing, Genesis will be 88 per cent New Zealand-owned.

“After loyalty bonus share allocations, the Crown will retain a 51 per cent shareholding, New Zealand retail investors will hold 26.7 per cent of the company, New Zealand institutions 10 per cent, offshore institutions 12 per cent, and participating iwi will hold 0.3 per cent.

Mr Ryall says the share offer programme has met all of the Government’s objectives.

“Firstly, it has raised billions of dollars that we can spend on assets New Zealanders want, without having to borrow overseas.

“Secondly, through each of the four share offers we have achieved more than 85 per cent New Zealand ownership.

“Thirdly, the share offers have deepened and strengthened our capital markets, with the Mighty River Power, Meridian and Genesis Energy IPOs together adding more than $8.85 billion in capitalisation to the NZX main board.

“Fourthly, 111,000 common shareholder numbers have been issued during the share offer programme, indicating that tens of thousands of New Zealanders have become shareholders for the first time.

“Finally, mixed ownership will be good for the companies themselves, giving them extra scrutiny and accountability, and additional sources of capital.”

Genesis will list on the NZX main board at 1pm tomorrow.

Mr Ryall says retail investors and institutions that did not receive all the shares they applied for will have the opportunity to buy additional shares once Genesis is listed.

Genesis will have the third-largest share register of all listed New Zealand companies, behind Mighty River Power and Contact Energy. Meridian has the fourth largest number of shareholders.

What you applied forWhat you will receive (rounded down to the nearest share)
Up to $2,500 (up to 1,613 shares)The full amount you applied for
From $2,500.15 (1,613 shares) to $5,000.30 (3,226 shares)$2,500.15 (1,613 shares) plus 28.75% of what you asked for beyond $2,500.15
From $5,000.30 (3,226 shares) to $40,650.30 (26,226 shares)$3,217.80 (2,076 shares) plus 5% of what you asked for beyond $5,000.30
$40,650.30 (26,226 shares) and above$5,000.30 (3,226 shares)

Mixed Ownership Model Programme – at a glance
Total proceeds from four share offers $4,668 million ($4.7b)

CompanyProceedsCrown retained holding[i]New Zealand ownership upon completion of share offerNumber of shareholders who purchased shares
MRP$1.686b51%86.5%113,000
Meridian$1.884b51%86.5%62,000
Air New Zealand$365m53%88%6,000
Genesis Energy$733m51%88%68,000

CompanyProceedsPercentage of share offer allocated to New Zealand retail investors[ii]Percentage of share offer allocated to New Zealand institutionsPercentage of share offer allocated to offshore institutions
MRP$1.686b54.9%17.5%27.6%
Meridian$1.884b59.7%12.7%27.6%
Air New Zealand$365m[iii]41%43%16%
Genesis Energy$733m55%20.5%24.5%

Important notice: The offer of shares in Genesis Energy Limited (“Genesis Energy”) was made by the Crown on the terms and conditions set out in the investment statement and the prospectus for the offer. 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.

--

[i] Excluding any shares withheld for allotment of Loyalty Bonus Shares (where applicable)
[ii] Includes shares withheld for allotment of Loyalty Bonus Shares or allocated to Participating Iwi (where applicable)
[iii] Air New Zealand share offer was for 22% of shares in the company


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