WELLINGTON, New Zealand–State-owned generator Meridian Energy Ltd. is likely to be listed on the New Zealand share market by early November, subject to market conditions, Prime Minister John Key said Tuesday.
The partial sale involving a 49% stake is the second state asset to be floated this year, after Mighty River Power Ltd. debuted in May.
The government announced its intention to list Mighty River Power, Genesis Energy Ltd. and Meridian Energy two years ago, intending to raise funds in order to return the budget to surplus in the 2015 fiscal year and end a run of budget deficits that now stretches to five years.
Meridian is the government’s largest power company and has been valued around 6.5 billion New Zealand dollars (US$5.2 billion). Mr. Key said the government remains committed to ensuring that 85% to 90% of the shares remain in New Zealand hands.
Finance Minister Bill English said Tuesday that as part of an incentive scheme New Zealanders will only have to pay 60% of the share price when they make their application–the remainder will be due 18 months after the offer closes. They will, however, receive the full dividend payout for the shares during that period.
Mr. Key also said Genesis Energy would likely be listed in early 2014, subject to market conditions
“While it would have been technically possible to fit a partial sale of Genesis into the share offer program this year, that’s not something we will be pursing in 2013,” he said.
There will be a minimum application size of NZ$1,000 for the first installment of the shares in Meridian. The offer will also include a share price cap for New Zealand retail investors, Tony Ryall, minister for state-owned enterprises, said.
ANZ Bank, ASB Bank and brokerage Forsyth Barr have been appointed to the retail syndicate for the offer. Macquarie Group Ltd., Goldman Sachs Group Inc. ( Goldman Sachs Group Inc), Deutsche Bank ( Deutsche Bank AG) and Craigs Investment Partners are joint lead managers for the offer.
Write to Rebecca Howard at rebecca.howard@wsj.com