Air NZ sell off could be this year
Two more state-owned assets could be on the block this year and the government's not ruling out Air New Zealand being one of them, with more details due to be announced in next week's budget.
The first asset up for partial privatisation, Mighty River Power, was floated on the NZX on Friday, and its shares, which were sold at $2.50, climbed 9.2 per cent to $2.73 on debut, before settling at $2.62.
The sale of 49 per cent of the company to 113,000 investors, including 80,000 first-time investors, raised $1.7 billion for the government.
State-Owned Enterprises Minister Tony Ryall says the next company up for sale - either Meridian or Genesis - will be announced in Thursday's budget.
"I can tell you one thing: it is an energy company, and I would expect that New Zealanders will have an opportunity to buy shares in that company, ... around about October," he told TVNZ's Q+A.
Asked whether shares in Air New Zealand, which is already partially privatised, could also be sold this year, Mr Ryall said he could not rule it out.
"Ministers are going to consider the Air New Zealand shareholding in the next few weeks and then we'll take advice and make a decision on that."
However, there would need to be "very favourable conditions" for the government to "get a number of floats away after [Mighty River Power]" this year.
Mr Ryall would not say if the government expected interest in the other assets to top that of Mighty River, nor would he speculate on share prices.
However, he appeared to concede that the government had set Mighty River's price low, so it would climb in early trading.
"If you ask anybody who's involved in a public float they'll tell you that everyone tries to aim for a small uplift on float," he said.
"Certainly the government wants New Zealanders to have a good experience in the number of partial floats that we're looking at doing."
NZN
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The first asset up for partial privatisation, Mighty River Power, was floated on the NZX on Friday, and its shares, which were sold at $2.50, climbed 9.2 per cent to $2.73 on debut, before settling at $2.62.
The sale of 49 per cent of the company to 113,000 investors, including 80,000 first-time investors, raised $1.7 billion for the government.
State-Owned Enterprises Minister Tony Ryall says the next company up for sale - either Meridian or Genesis - will be announced in Thursday's budget.
"I can tell you one thing: it is an energy company, and I would expect that New Zealanders will have an opportunity to buy shares in that company, ... around about October," he told TVNZ's Q+A.
Asked whether shares in Air New Zealand, which is already partially privatised, could also be sold this year, Mr Ryall said he could not rule it out.
"Ministers are going to consider the Air New Zealand shareholding in the next few weeks and then we'll take advice and make a decision on that."
However, there would need to be "very favourable conditions" for the government to "get a number of floats away after [Mighty River Power]" this year.
Mr Ryall would not say if the government expected interest in the other assets to top that of Mighty River, nor would he speculate on share prices.
However, he appeared to concede that the government had set Mighty River's price low, so it would climb in early trading.
"If you ask anybody who's involved in a public float they'll tell you that everyone tries to aim for a small uplift on float," he said.
"Certainly the government wants New Zealanders to have a good experience in the number of partial floats that we're looking at doing."
NZN