HomeInfratil News2013Z Energy IPO Priced at $3.50

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Z Energy IPO Priced at $3.50

16 Aug 2013

60% of Z Energy to be sold; NZX and ASX listing and quotation 19 August

Z Energy shareholders, Infratil Limited and NZSF Aotea Limited (on behalf of the New Zealand Superannuation Fund) are pleased to announce that their joint owned company Z Energy Holdings Limited has conditionally agreed to sell 60% of Z Energy in its Initial Public Offer, realising gross proceeds of $840m ($420m each). The Final Price per Offer Share has been set at $3.50, in the middle of the indicative price range of $3.25 - $3.75. Infratil Limited’s and NZSF Aotea Limited’s (on behalf of the New Zealand Superannuation Fund) retained shareholding in Z Energy (through Z Energy Holdings Limited) will be 40%.

Infratil CEO Marko Bogoievski said the market’s response to the IPO was very strong across the board.

“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. “

“Our feedback suggests investors have been attracted to Z Energy’s cash flows, dividend outlook and range of potential future growth areas.”

“Z Energy has been a very good investment for Infratil and while we have reduced our holding, we remain significant shareholders.”

New Zealand Superannuation Fund spokesperson Matt Whineray said the Fund was pleased to have been involved in Z’s success over the last three years. “We look forward to supporting Z’s Board and management as a listed company alongside new shareholders.”

Mr Whineray said the Fund continues to hold a significant investment in Z. “The Fund’s remaining 20% stake is still one of our largest investments. We look forward to continuing to share in the Z story.”

Mr Whineray said the Fund would be reinvesting the proceeds of the sale in other investment opportunities in New Zealand and internationally.

Z will be New Zealand’s first listed transport fuels distribution company and is expected to be among the largest 20 New Zealand companies on the NZX main board. Shares in Z are expected to commence trading (initially on a conditional settlement basis) on the NZX Main Board at 11am New Zealand time on Monday 19 August and on the ASX (initially on a conditional and deferred settlement basis) at 11am Australian Eastern Standard Time on Monday 19 August.

Z Energy was purchased by Infratil and the New Zealand Superannuation Fund from global energy company Shell in 2010, with each party taking a 50% share. 

As outlined in the combined investment statement and prospectus dated 25 July 2013, the remaining shares held by Infratil and the NZSF Aotea Limited will be subject to transfer restrictions until after the release of Z’s results for the half year to 30 September 2014.

First NZ Capital, Goldman Sachs, Deutsche Bank/Craigs and Forsyth Barr acted as Joint Lead Managers in the offer.


The $23 billion New Zealand Superannuation Fund, which is a savings vehicle designed to help pay for the rising costs of New Zealand’s universal superannuation scheme, has $3.3 billion invested in New Zealand, including more than $1 billion in the local sharemarket.  As at 31 May 2013 the Fund had returned 8.99% per annum since inception in 2003.

Infrastructure investor Infratil, which is listed on the NZX (IFT.NZ) and capitalised at over $1.4 billion, is an owner and operator of essential services businesses in the energy, airport and public transport sectors.  Current investments include TrustPower, Wellington Airport, New Zealand Bus, and Infratil Energy Australia.

The offer of shares in Z Energy Limited was made by Z Energy Limited and Z Energy Holdings Limited on the terms and conditions set out in a combined investment statement and prospectus dated 25 July 2013 (the “Offer Document”).Application has been made to NZX Limited (NZX) for permission to quote the ordinary shares of Z Energy on the NZX Main Board. All requirements of NZX relating to that application that can be complied with on or before the date of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988. An application for listing on the market operated by ASX Limited (ASX) has been made for Z Energy Limited to be admitted to the official list of ASX and for the shares of Z Energy Limited to be quoted on ASX. The fact that ASX may admit Z Energy Limited to the official list and quote its shares on ASX is not to be taken as an indication of the merits, or as an endorsement by ASX, of Z Energy Limited or its shares.  ASX accepts no responsibility for any statement in this communication. ASX is the holder of an Australian market licence granted under the Corporations Act 2001 (Cth) under which it operates its financial market and is regulated by the Corporations Act 2001 (Cth).

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