Z energy to list at $NZ3.50

The price is halfway between the pre-determined range and will give the company a $NZ1.4 billion market capitalisation when it lists on Monday.

New Zealand fuel distributor Z Energy (ZNZ) is to raise NZ$840 million with an inital public offering priced at NZ$3.50, the Wall Street Journal reports.

People familiar with the matter told the newspaper that the price is set midway between the predetermined range of $NZ3.25-$NZ3.75 a share, which will make the market capitalisation of the company $NZ1.4 billion – the biggest float since Mighty River Power (MYT) in May.

Infratil Ltd and the New Zealand Superannuation Fund are selling a combined 60% of Z Energy for the $840 million after buying it for $696.5 million back in 2010.

Shares in Z Energy will be dual-listed on the New Zealand and Australian Stock Exchanges and will begin trading on Monday, August 19.