Z Energy sets offer price
The offer price for Z Energy shares is $3.50.
The petrol station chain, owned jointly by listed infrastructure company Infratil and the New Zealand Superannuation Fund, has undergone a $840 million initial public offer.
The companies will remain significant shareholders, retaining 40% of the company.
Infratil chief executive Marko Bogoievski says the market’s response has been “very strong”.
“We received a strong response from the retail broker network, with their allocations requiring significant scaling.
“We have also been delighted with the positive response from institutional investors, which we see as a validation of the New Zealand economy, the transport fuels industry, and the achievements of Z under our ownership."
New Zealand Superannuation Fund spokesperson Matt Whineray says it will reinvest the proceeds of the sale in other investment opportunities in New Zealand and internationally.
Z Energy is expected to be among the largest 20 New Zealand companies on the NZX main board.
Trading of shares on the NZX and ASX begins on Monday.
Earlier this week, research house Morningstar suggested investors hold their money until Z Energy floats, suggesting volatility in the sector means the price is likely to slip.
Infratil and the NZ Super Fund bought the petrol stations from global oil giant Shell for $696.5 million in April 2010, with equity of $420 million and the balance funded by debt – debt which has been repaid or transferred to Z Energy’s books.