Breaking: Mighty River Power share price set at $2.50

Following a bookbuild with the country’s major institutional investors today, Finance Minister Bill English has announced that Mighty River Power will be priced at $2.50 a share.

The government is set to net $1.7billion from the partial privatisation whilst retaining a controlling 51% stake in the company.

More than 400,000 New Zealanders registered their interest in the issue, with 113,000 following through to purchase. Of the issue, 86.5% will be New Zealand owned with 26.9% going to retail investors and 8.6% to New Zealand institutions.

The company is set to be officially floated on both the New Zealand and Australian stock exchanges on Friday.

More to come.