Z Energy jumps 6.6 percent on NZX debut, netting Super Fund $420m
Shares in Z Energy [NZX: ZEL] jumped 6.6 percent to near the top of its indicative price range in its NZX debut today, valuing the service station chain at $1.49 billion.
The stock first traded at $3.73, up from its $3.50 initial public offering price, and recently traded at $3.71, a 6 percent premium to the IPO. The petrol station chain is the latest listing on New Zealand's stock exchange after owners Infratil and the New Zealand Superannuation Fund sold 60 percent of their stake in the company, delivering $420 million to each of the vendors. Infratil's shares rose 0.8 percent to $2.48.
Investors display confidence
"Investors have shown confidence in Z's performance and management and investor demand to own a share in the company has been incredibly strong," chairman Peter Griffiths said in a statement. "Z has built a strong business and brand over the last three years and the opportunities for future growth are realistic and achievable."
The sale attracted 10,075 shareholders to Z's register, even though it wasn't open to the public.
Z is forecasting operating earnings of $219 million in the 2014 financial year and $104 million in the first half of 2015, based on a historical cost measure, which is how it reports to the tax department, according to its offer document.
Net profit is expected to be $115 million in 2014, and $50 million in the first half of 2015. The directors expect to declare a dividend of $88 million in the 2014 financial year.