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.
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