Genesis shares priced at $1.55
Genesis shares priced at $1.55 – majority available to NZ retail investors
New Zealanders have the opportunity to buy the majority of available Genesis Energy shares when the offer opens to retail investors tomorrow morning, after the successful completion of the bookbuild.
The Genesis shares have been priced at $1.55 each, meaning total proceeds from the offer will be up to $736 million. Already, $620 million has been committed through the bookbuild, which was the first stage of the share offer.
Based on the final price per share, the prospective 2015 financial year implied gross dividend yield is 14.3 per cent.
New Zealanders have been put at the front of the queue for shares. Up to 55 per cent of the Genesis share offer is expected to go to individual New Zealand retail investors - including loyalty bonus shares, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.
“From tomorrow, New Zealanders can apply for these shares in three ways; via a sharebroker, online or by using the paper application form accompanying the Investment Statement,” Mr English says.
“To encourage New Zealand participation, New Zealanders who buy shares and hold them for 12 months in the same name from allotment date (expected to be 16 April 2014) will be eligible for one loyalty bonus share for every 15 shares they hold, with a cap of 2000 bonus shares,” Mr English says.
“At the final share offer price, Genesis will have an indicative market capitalisation of $1.55 billion,” Mr English says.
“We have again delivered on
our New Zealand ownership commitment, with Genesis expected
to be 88 per cent New Zealand owned when it lists on the NZX
main board on 17 April. The Crown’s retained shareholding
will be at least 51 per cent when the general offer closes
on 11 April,” Mr English says.
Mr Ryall says the
Government’s share offer programme has met every objective
set by ministers.
“We will raise up to $4.7 billion dollars from the four share offers. This is within the Treasury’s latest estimate of between $4.6 billion and $5 billion across the entire programme.
“These proceeds are available to be invested in new public assets such as schools, hospitals and ultra-fast broadband without having to borrow more from overseas lenders.
“Of the expected total proceeds raised in the share offer programme, up to $2.6 billion – or 55 per cent of the proceeds – will have been invested by individual New Zealand retail investors.
“Each of the four sales will be completed with more than 85 per cent New Zealand ownership, delivering on the commitment we gave to New Zealanders in 2011 and demonstrating local confidence in investing in home- grown Kiwi companies.
“The programme has also provided a significant boost to New Zealand’s capital markets. The three energy company IPOs have added more than $8.85 billion in capitalisation to the NZX main board,” Mr Ryall says.
Important
notice: The offer of shares in Genesis Energy
Limited (“Genesis Energy”) is made by the Crown on the
terms and conditions set out in the investment statement and
the prospectus for the offer. The offer is not yet open.
When it opens, applications for shares must be made on the
application form accompanying the investment statement. The
Crown does not guarantee the shares in Genesis Energy. An
application has been made to NZX Limited ("NZX") for
permission to list Genesis Energy, and to quote Genesis
Energy's shares, on the NZX Main Board, and all requirements
of NZX relating thereto that can be complied with on or
before the date of this advertisement have been duly
complied with. However, NZX accepts no responsibility for
any statement in this advertisement. The NZX Main Board is a
registered market operated by NZX, which is a registered
exchange, regulated under the Securities Markets Act
1988.
Genesis Energy share offer next steps
and indicative dates
• General Offer
Closes 5pm 11 April
• Brokers allocate shares to
New Zealanders Complete by 5pm 14 April
•
Shares allotted
16 April
• Genesis listed on NZX Main Board
17 April
• Expected first dividend payment
October 2014
• Loyalty Bonus Share allotment
expected around 16 April 2015
Genesis Energy share offer –
bookbuild at a glance
Final share offer
price
$1.55
Prospective
FY2015 implied gross dividend yield
14.3 per cent
Expected percentage total New Zealand ownership at listing 88 per cent
Expected share offer
proceeds
(Proceeds remain subject to the number
of shares sold through the General Offer)
Expected maximum proceeds from share offer
$736 million
Expected
share offer allocations
(Final allocations
remain dependent on the number of shares sold through the
General Offer)
Shares on offer for New Zealand retail investors 55 per cent
Shares on offer allocated to New Zealand institutions 20.5 per cent
Shares on offer allocated to offshore institutions 24.5 per cent
Government share offer
programme at a glance
(Remains subject to the number of shares sold through the Genesis general offer)
Total expected proceeds
$4.7 billion
Total investment by New Zealand retail
investors $2.58
billion
Total investment by New Zealand institutions
$0.85 billion
Total investment by offshore institutions
$1.24
billion