Z Energy is preparing to list on the NZX.
New Zealand-owned energy company Z Energy is preparing
for a potential listing on the NZX, something which will be
welcomed by investors, brokers say.
The company, formerly Shell, is owned by infrastructure
investor Infratil and the New Zealand Superannuation Fund.
In a statement, the owners said while no firm decisions had
been made, they had asked Z Energy to work towards a possible
listing of 40% to 60% of the company in the third quarter of
Infratil chief executive Marko Bogoievski said at the time of
purchase, Z Energy had the challenge of moving off the Shell
global platform, new capital investment priorities and the
challenge of executing countrywide branding.
''Now, nearly three years on, these have been met and Z
Energy has strong cashflows, a good dividend outlook and
growth options, which would suit a wider investor audience.''
Craigs Investment Partners broker Chris Timms estimated Z
Energy had a book value of around $1 billion, which meant any
float would raise between $400 million and $600 million.
The owners had said they would each retain a 20% to 30% stake
in the company after listing.
''This listing will be fairly well received. It makes sense
to go to the market now. If they had tried to do this three
years ago, they would have struggled because of the diverse
ownership of the company before it became Z Energy. It is a
NZ super fund spokesman Matt Whineray said the listing would
be beneficial for New Zealand's capital market.
The fund's investment in Z Energy had performed well, with
the asset benefiting from increased capital investment,
strong branding and a focus on customer service.
As a result, Z Energy represented a larger proportion of the
fund that it did at the time of purchase. A partial listing
appealed as a way of diversifying the fund's investment
portfolio, he said.
At January 31, Z Energy was the $21 billion fund's
second-largest New Zealand investment, making up 2.4% of the