New Zealanders are being offered an allocation incentive to pre-register for shares in MightyRiverPower as the government ramps up a campaign to promote the $1.8 billion selldown of the state-owned power company.
Those that pre-register over the next three weeks may be allocated 25 percent more shares than those who don’t pre-register if demand exceeds supply, Finance Minister Bill English and State owned Enterprises Minister Tony Ryall said in a statement.
Pre-registration for the retail component of the sale is only open to New Zealanders and doesn’t include institutions, they said.
No details were given of the wholesale part of the sale, where shares are sold to institutional investors, or on how the price will be set. The price of share sales with a retail and wholesale component are typically set via a bookbuild with institutions.-
The next three weeks will see the government mount a $1.1 million mass market television, newspaper and internet campaign to entice kiwis to invest in the 49 percent of MightyRiverPower going on offer.
The government said yesterday it is aiming to ensure 85 percent to 90 percent of the shares on offer are bought by New Zealand investors.