Genesis Energy shares scaled back to $5000 cap

Genesis Energy's Reg Soepnel pictured overlooking the huge units at Huntly Power Station in the Waikato. Photo / Alan Gibson.

The Genesis Energy public share offer has been heavily scaled back, with a cap of $5000 worth of shares set on general applications, the Government said.

Due to demand in the general offer, the broker firm offer was reduced by 20 per cent, with these shares re-allocated to the general offer.

A progressive scaling policy had been applied to the general offer which would see larger applications scaled more significantly than smaller applications, he said.

The scaling policy effectively placed a cap of about $5000 on all general offer applications, he said.

At the time of listing tomorrow, Genesis will be 88 per cent New Zealand-owned.

After loyalty bonus share allocations, the Government will retain a 51 per cent shareholding, New Zealand retail investors will hold 26.7 per cent of the company, New Zealand institutions 10 per cent, offshore institutions 12 per cent, and participating iwi will hold 0.3 per cent.

More than 68,000 retail investors have been allocated shares.

The sale of 49 per cent of Genesis has raised $733 million for the Future Investment Fund, bringing the total proceeds from the share offer programme to $4.7 billion.