Markets: Z Energy's IPO hero

Z Energy’s IPO and subsequent price rise has more than doubled Infratil’s return on its investment in the group.

Infratil has more than doubled its investment return in petroleum product distributor Z Energy with the sale of its 30 per cent stake in the Z Energy initial public offering last week reaping gross proceeds of $NZ420 million for the New Zealand owner and operator of public transport, airport and energy businesses.

In an ASX statement Infratil said its 50 per cent stake in Wellington-based Z Energy was $NZ324 million in March, valuing the 30 per cent it sold in Z Energy’s IPO at $NZ194.4 million. Infratil’s cash proceeds from the 30 per cent stake sale in the Z Energy IPO were $NZ396 million.

Infratil’s remaining 20 per cent stake in Z Energy as of March was valued at $NZ129.6 million. That is now worth $NZ300 million given Z Energy’s market value of $NZ1.5 billion, according to Bloomberg data. Infratil was also paid a special dividend of $NZ50 million prior to the Z Energy IPO.

At 0852 AEST Z Energy shares were trading at $NZ3.74 compared to the company’s IPO price of $NZ3.50 a share.