Meridian dismisses IPO worries

Renewable energy firm downplays potential NZ regulatory changes.

Renewable energy generator Meridian Energy (MEZ) chief executive Mark Binns has downplayed concerns about the impact potential New Zealand government regulatory changes could have on the company ahead of its much-anticipated initial public offering, according to The Australian Financial Review.

Mr Binns told the AFR that he expects all 380 million shares available to investors outside New Zealand to be allocated despite concerns raised by research houses that energy reforms put forward by New Zealand's opposition Labour-Green coalition could jeopardise Meridian's earnings and valuation.

The Meridian offer is set to raise between $NZ1.9 billion ($A1.7 billion) and $NZ2.3 billion via the sale of 49% of the company at shares priced between $NZ1.50 and $NZ1.80 each.

Meridian is set to list in New Zealand and Australia on October 29, and 85% of the company, including the NZ government's 51% stake, will remain in NZ.

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