Powerco lines up for NZSE listing

By GEOFF SENESCALL

Central North Island electricity networks company Powerco is set for a stock exchange listing late next month.

Four broking firms have been appointed to handle the float, which will see 28.6 million of the company's 222.4 million shares go public.

The offering results from two holders selling - Alliant International NZ, with 8.1 per cent, and Infratil Investments, with 4.9 per cent. Both have investments in retail networks and therefore cannot be shareholders in a lines company such as Powerco.

The pricing of the shares is expected to be set through a prospectus offering.

Powerco shares trade at present on the unlisted grey market. They last traded at 140c, giving the company a market capitalisation of $311 million.

However, when Powerco foreshadowed a listing last month, it indicated that it was expecting a price of 200c a share. That would give Powerco a market capitalisation of $448 million and give it a place on the NZSE-40 index.

Powerco was created on September 1 through the merger of New Plymouth-based networks company Powerco and Palmerston North-based CentralPower.

The entity - with a customer base of 175,000 and covering an area from Wairarapa to Taranaki - is the country's fourth-largest network business.

The merger was handled by merchant banking firm Macquarie New Zealand. It is not part of the team floating Powerco because it has no broking arm, although Macquarie does hope to set one up here by the end of the year.

Handling the float are ABN AMRO and Credit Suisse First Boston. Also involved in the process are Craig & Co and Forsyth Barr.