Brokers queuing to join Vector action

Sharebroking firms Forsyth Barr, ABN Amro Craigs and First NZ Capital are seeking a piece of the action in New Zealand's share float of the decade, power lines company Vector.

ABN Amro and Goldman Sachs JBWere already have plum positions in the biggest initial public offering since Contact Energy in 1999. Goldman Sachs is providing strategic advice and ABN Amro is the lead manager for the issue.

The Business Herald was told Forsyth Barr, ABN Amro Craigs and First NZ Capital had all been interviewed for co-manager roles.

ASB Securities is also understood to be seeking a role.

On industry norms, the booty for sharebroking firms is likely to be 2 per cent to 2.5 per cent of the $550 million to $650 million expected to be raised by selling 24.9 per cent of Vector - $11 million to $16.25 million.

The share offer is expected to be in stages to three key groups: the Auckland power users who are the beneficiaries of the consumers' trust, Vector bondholders, and minority shareholders in NGC.

NGC shareholders are expected to be offered offered a mix of cash and Vector shares for their NGC stock as part of Vector's efforts to secure full ownership of NGC. Vector has 67 per cent of the company - bought last year for $877 million.

The share offer will be fixed-price rather than a "book build", the auction method often used to set the price for a share float.

A prospectus is expected to be registered around the end of this month.

Vector has over 640,000 electricity customers and is the country's dominant electricity and gas distributor.