Craigs Investment Partners head of research Mark Lister told the Otago Daily Times the Government might look to Australia and follow the example set with the earlier sale of Queensland Rail.
In that instance, the Queensland state government introduced an incentive-type scheme for retail investors. If the investors, typically described as "mums and dads", held the shares for a set period of time - around two years - they received free loyalty shares.
"That made it more attractive for retail investors as they were getting something for nothing. It also provided incentives to stick with the company for a long period of time rather than chase a sale on the first day.
"We think our Government will look at incentives down the line."
Mr Lister and Craigs' head of investment management, James Beale, were in Dunedin yesterday as part of a nationwide tour to talk to clients and investors.
Part of the presentation was on the partial sale and listing of government-owned energy companies Mighty River Power, Genesis Energy and Meridian and coal producer Solid Energy.
Mighty River was likely to be listed on the NZX in the third quarter of this year.
Opposition to the sell-down has been growing with petitions launched and supported by Grey Power, some student associations and the Labour Party.
Prime Minister John Key had promised that New Zealand shareholders would be first in line for the SOE shares although there is no way of ensuring they stay in New Zealand hands after the first sale.
Messrs Lister and Beale were quick to steer clear of any political questions.
Mr Beale said about 90% of questions from investors were about the assets and the sell-down process. The remainder were on political issues.
There had been strong investor interest in acquiring shares in the company and some questions were around how investors could get the shares when they were allocated.
The energy companies were high-quality businesses and Craigs wanted to keep its clients in the companies.
"If they are providing long-term income for investors, why not keep them?"
The electricity companies had provided steady profit growth and Mr Beale expected that growth to continue. But he was not rushing into judgement before viewing a prospectus.
