Analysts are picking demand will be high for shares in the country’s biggest electricity retailer, Genesis Energy, when its public offer opens today.
The price for shares in the state-owned energy company was announced at $1.55 last night after a bookbuild with institutional investors. The sale would raise up to $736 million for the Crown.
Finance Minister Bill English said already $620 million had been committed through the bookbuild, which was the first stage of the share offer.
At that price the shares will yield a gross dividend of 14.3 per cent, he said.
I wasn’t going to buy Genesis shares as I had purchased Meridian and Mighty River Power shares. But that yield was too attractive.
As the possibility of a clear Labour/Greens Government fades, the chance of their barmy competition destroying policy being implemented fades, and the share prices of the sector shares should all improve.