Vector float attracts 49,000 new shareholders

Power users across much of the Auckland region have been issued shares worth up to $3146 in the energy network company Vector.

The company is being partially privatised by the Auckland Energy Consumer Trust, which is selling 24.9 per cent of Vector to new investors.

All 290,000 income beneficiaries - power users in Auckland City, Manukau City and most of Papakura - were given preferential rights in the float and allowed to apply for new shares.

People who pre-registered for the share float and sent in cheques will be allocated a maximum of 1321 shares each.

Any beneficiary wanting more than this amount will get a refund for the outstanding amount.

The new Vector shares will begin trading on the stock exchange at 11am on Monday.

It is expected they will list at a premium, since demand for the limited number of shares was so high.

The $592 million raised from the share float is being used to buy gas wholesaling and transmission company NGC.

Vector owns the local power line system and gas pipelines.

It also has a telecommunications arm.

The company said yesterday that the float had brought in 49,000 new shareholders.

It could not say how many of these were income beneficiaries.

It is being touted as the biggest float of a New Zealand company since Contact Energy was privatised in 1999.

Vector and the trust say that since NGC has been bought, the overall company will be much bigger, so annual dividends paid out to beneficiaries on power accounts will double.

The entire float and privatisation has happened despite the opposition of three of the five AECT trustees.