Shares in Z opened at $3.73, a 23c premium on their $3.50 share price.
The $3.50 share price raised $840 million for Z's co-owners Infratil and the New Zealand Superannuation Fund, which sold 60% of the service station chain.
Infratil and the super fund bought Z Energy in 2010 for $695.6 million. While the owners had squeezed a lot of money out of the company, Z was still regarded as a yield company.
Brokers said the deal was well supported, and Z would become the country's first transport fuels distribution company, putting it among the top 20 New Zealand companies on the NZX.
The Government had high expectations of the float earlier this year of Mighty River Power, but political issues surrounding an energy-buying plan by the Labour and Green parties caused some investor unease.
The shares trade below their listing price and uncertainty continues around Mighty River's performance. Mighty River shares were issued at $2.50, traded at $2.73 on the first day, before finding a level around $2.62.
Yesterday, Mighty River shares last traded at $2.23.
Meridian is likely to list on October 18, and the prospectus is out next month.
The Government recently paid $30 million to secure a renegotiated electricity contract between Meridian, which operates the Manapouri energy project, and global resources giant Rio Tinto.
The deal secures the future of the Tiwai Point aluminium smelter for only another three years.
Unless the value of the New Zealand dollar falls, or the global price of aluminium rises substantially, many people believe Rio Tinto will close the smelter in about four years.
The support Z received on listing takes $840 million away from the potential of Meridian, from which the Government is seeking to raise between $2 billion and $2.5 billion.
New Zealand institutions would have received an allocation for Z and are likely to seek more as the company becomes part of the top-20 listed companies.
Retail investors have been looking for a relatively good return on their money to replace the 8% or so they have been receiving from five-year bonds, which are currently rolling off.
Z Energy's issue price of $3.50 implies a yield of 8.7% and brokers say long-term investors are likely to be attracted to the return and hold on to their shares.
Unlike Meridian, which is heavily regulated and subject to much political pressure and speculation, Z trades in a relatively free environment.
Investors are more likely to be now attracted to companies such as Z, rather than face the vagaries of a regulated company in which the Government will still hold 51%.
