The Government, fresh from the sale of shares in Mighty River Power and Meridian Energy, faces a harder sell when it comes to divesting a 49 per cent stake in the third and final power generator.

Meridian Energy's instalment receipts have continued to hold firm, helped by buying interest from Bank of New York Mellon Corp, through its London-based subsidiary, Newton Investment.

The head of New Zealand's investment regulator has hit out at the Government's energy company sharemarket floats and says they have failed to lead the way in making it easier for retail investors to access information.

Meridian says a New York bank owns just 3.98 per cent of the company - not the 8.1 per cent it said earlier.

The FMA yesterday called on issuers of investment statements and prospectuses to "lift their game" after its report on the industry following its guidance note of June last year.

The price of newly-listed Meridian Energy instalment receipts edged higher this morning.

Analysts expect power company's stock to keep trading above its issue price after gaining 8% on first day.

Share price expected to rise on first day but analysts are unsure of progress after that.

The low turnout and price set in the Meridian Energy float this week has confirmed the failure of the Government's "Mixed Ownership Model", says Bernard Hickey.

Market players say Meridian Energy's initial public offer price is fair and reflects the lessons the Government has learned from its listing of Mighty River Power.

The deal will raise $1.88 billion instead of the maximum $2.25 billion for the 49 per cent share, and values Meridian at $3.84 billion.

The chances of the Govt raising $5 billion to $7 billion from its partial assets sales is looking dimmer after details of No 2 sale, Meridian, were announced last night.

Meridian shares will be issued at a listing price of $1.50, the bottom of the indicative range, and with a much smaller investor pool than the government had hoped for.

People contemplating investment in Meridian Energy shares need to think long and hard about political risk, writes Brian Fallow.

Potential investors in Meridian Energy have plenty of reading material.

Independent research house Morningstar has come out in favour of the upcoming Meridian Energy float, saying it is likely to appeal to long-term investors seeking yield.

Prime Minister John Key has confirmed the Citizens Initiated Referendum over asset sales will take place in late November and early December this year.

The Government says there has been strong early demand for its Meridian share offer, which opens today.

A plan to produce power for 250,000 homes from tidal turbines in Kaipara Harbour, north of Auckland, has been put on hold.

Close to half of the Meridian share offer has been claimed by New Zealand retail investors ahead of the offer opening tomorrow.

Meridian Energy's IPO is all about political risk.