WELLINGTON, New Zealand (AP) Shares in New Zealand's largest electricity generator traded at a modest premium Tuesday after an initial public offering.
Meridian Energy started trading at 1.08 New Zealand dollars ($0.90) after the government sold 49 percent of the company as part of a contentious asset sales program.
Under the terms of the sale, investors initially paid NZ$1 for Meridian installment receipts. They will be required to pay another NZ$0.50 in 18 months. The company generates about 30 percent of New Zealand's electricity from hydro dams and wind farms.
The sale will raise NZ$1.9 billion for the government, money it says it will use to reduce public debt and pay for schools, hospitals and roads. The government earlier this year raised NZ$1.7 billion from selling 49 percent of another energy company, Mighty River Power.
The government plans to sell shares in a third power company, Genesis Energy, and a small stake in national carrier Air New Zealand to raise a total NZ$5 billion.