Z Energy Ltd., a gas station owner that supplies a third of New Zealand’s fuel., is seeking to raise as much as NZ$900 million ($717 million) from an initial public offering next month.
The IPO will reduce Infratil Ltd. and the New Zealand Superannuation Fund’s combined stake to between 40 percent and 50 percent of the company, Wellington-based Z Energy said in an e-mailed statement today. The IPO could raise as little as NZ$650 million depending on how much the owners retain and the price set at a bookbuild in mid August, the company said.
Z Energy has been briefing investors on its financial performance after its owners in May appointed advisers on a possible share sale. By seeking a stock exchange listing next month, the company will tap demand ahead of the government’s planned IPO of Meridian Energy Ltd. in the fourth quarter, which may seek as much as NZ$3 billion.
“This listing is an opportunity for investors to take a stake in a major infrastructure and retailing company,” Infratil Chief Executive Officer Marko Bogoievski said in a separate statement. He is standing down as Z Energy chairman and will remain on the board.
Infratil and New Zealand Superannuation have agreed not to reduce their stakes further until after Z Energy reports earnings for the six months ending September 2014.
The bookbuild on Aug. 15-16 will set a price for Z Energy shares within a range of NZ$3.25 to NZ$3.75, the company said. The stock will be listed in New Zealand and Australia.
First NZ Capital Group Ltd. and Goldman Sachs New Zealand Ltd. were named in May as arrangers and joint lead managers of the sale. Craigs Investment Partners Ltd./Deutsche Bank AG and Forsyth Barr Ltd. are joint lead managers.
Infratil, which invests in power companies, airports and energy businesses, joined with New Zealand Superannuation in 2010 to buy Royal Dutch Shell Plc (RDSA)’s local fuel retailing assets for NZ$696.5 million. The assets included a 17 percent stake in New Zealand’s only oil refinery, 220 gas stations and a distribution network involving port infrastructure.
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