Shares in Z Energy debuted on the NZX at $3.73, a 23-cent
(6.6 per cent) premium to their $3.50 issue price today.
Z Energy's co-owners Infratil and the New Zealand
Superannuation Fund last week sold 60 per cent of the service
station chain in what brokers said was a well-supported
initial public offer, which was priced in the middle of a
$3.25 to $3.75 indicative price range.
Infratil and the Super Fund will each reap $420 million from
Z Energy will be New Zealand's first listed transport fuels
distribution company and will be among the top 20 New Zealand
companies on the NZX.
Infratil and the NZ Superannuation Fund bought the company -
which represented Shell's downstream New Zealand assets - in
2010 for $696.5 million.
Z Energy's debut will take place in a generally buoyant
market which has seen the benchmark NZX-50 index gain about
25 per cent over the last year.
Not all the NZX's latest debutant's have traded strongly.
Mighty River Power shares last traded at $2.24, well down
from their issue price of $2.50. Moa, the tiny brewing
company, traded at 85c, compared with last year's issue price
Dairy sector stocks have fared better. Shares in the Fonterra
Shareholders Fund units, which last changed hands at $6.94
each, continue to trade at a big premium to their $5.50 issue
price, as does Synlait Milk, which traded at $2.76 compared
with a $2.20 share issue price.
The partial privatisation of state-owned South Island power
generator, Meridian, is expected to occur later this year.
- Jamie Gray, APNZ business reporter