Markets: Z Energy raises $840m in IPO

Infratil and New Zealand Superannuation sell their combined 60 per cent stake in the fuel company.

Z Energy Ltd has sold $NZ840 million worth of stock in an initial public offering after the company’s two shareholders, Infratil Ltd and the New Zealand Superannuation fund, together sold 60 per cent of their shares in the company, which sells about a third of New Zealand’s fuel.

Wellington-based Z Energy sold 400 million shares at $NZ3.50 each. That price was the middle of the range set by the IPO’s joint lead managers, First New Zealand Capital, Goldman Sachs and Deutsche Bank together with Craigs Investment Partners and Forsyth Barr, of $NZ3.25 and $NZ3.75 a share.

The stock will begin trading on the New Zealand Stock Exchange at 1100 New Zealand time on Monday August 19, a corporate statement said.

“We received a strong response from the retail broker network, with their allocations requiring significant scaling,” Infratil chief executive Marko Bogoievski said. “We have also been delighted with the positive response from institutional investors, which we see as a validation of the New Zealand economy (and) the transport fuels industry.”

Infratil, which invests in power companies, airports and energy businesses, joined with New Zealand Superannuation in 2010 to buy Royal Dutch Shell Plc’s local fuel retailing assets for $NZ696.5 million. The assets included a 17 per cent stake in New Zealand’s only oil refinery, 220 gas stations and a distribution network involving port infrastructure.

Each company took a 50 per cent stake in Z Energy. Now their stakes have been reduced to 40 per cent with each having a 20 per cent shareholding in Z Energy.

Infratil and New Zealand Superannuation have agreed not to reduce their stakes further until after Z Energy reports earnings for the six months ending September 2014.

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