With the Supreme Court finding in favour of the Government, Prime Minister John Key confirmed that up to 49% of Mighty River Power would be sold to the public with the caveat that the sale was subject to market conditions.
As expected, the Government continued to say that New Zealanders, including iwi, would be at the front of the queue when it came to the share allocation.
State Owned Enterprises Minister Tony Ryall said the share offer had been designed to put New Zealanders first.
Mighty River would be listed on the main board of the NZX, this listing expected to be its primary stock exchange listing.
Mr Ryall also expected there to be a secondary listing on the Australian Stock Exchange (ASX).
There was nothing unusual about this. Eight of the 10 largest New Zealand-listed companies were already dual-listed in Australia.
''There is a balance to be struck here. On the one hand, we have given New Zealanders an absolute commitment that Kiwis will be at the front of the queue for shares.
''On the other hand, we want to ensure there is enough tension in the share price for investors.''
A secondary listing in Australia would help to achieve that, Mr Ryall said.
Some Australian institutions, under their own investment mandates, would not be able to invest in Mighty River Power unless it was also listed in Australia. The website for pre-registration and for the share offer itself was designed to restrict people from outside New Zealand from participating.
However, the IPO would be open to some institutional offshore investors to help ensure New Zealand taxpayers got the best price for the shares being sold, Mr Ryall said.
The Government expected around 85% to 90% of the shares to be held by New Zealanders after the share offer.
Finance Minister Bill English said National campaigned on the asset sales policy at the election in 2011 and it had been extensively discussed.
''It has been through the High Court and the Supreme Court, where the Government has won both cases and now, at last, it's time to get on with it.''
A substantial advertising and telecommunications campaign covering television, print and online media would start today to raise awareness of the IPO (initial public offering) and tell people how to pre-register their interest.
The campaign would include a strong investor education element for those unfamiliar with the sharemarket. Mr English ''strongly recommended'' potential investors obtained independent financial advice.
The price of Mighty River Power shares has not yet been set. Details of the share offer, including how the price will be set, will be contained in the offer document, which is expected to be available next month. What usually happens in these cases is that institutions indicate what price they are willing to pay for the shares in a ''book-build'' process. A range of prices is then decided on, demand deciding where the price will be in that range.
The minimum application amount will be $1000. New Zealanders applying for up to $2000 worth of shares will not be scaled back if the IPO is over-subscribed. A loyalty bonus will apply for New Zealand retail investors who keep their shares for a minimum period.
Mr Key said the Government's share offer programme was an important policy. It was expected to free up $5 billion to $7 billion, which could be invested in other assets such as schools and hospitals, without the need to borrow in volatile overseas markets.
''From the Government's perspective, it makes sense to use this opportunity to reorganise the Government's assets and redeploy capital to priority areas without having to borrow more. We intend to make it as easy as possible for New Zealanders to get access to information, register their interest and apply for Mighty River Power shares.''
What they said
The Mighty River Power share offer has been designed to achieve widespread New Zealand ownership. We envisage that, with the Government's majority shareholding, total New Zealand ownership will be 85% to 90% of the company after the share offer - Prime Minister John Key
The asset sales programme will ultimately see millions of dollars go into the pockets of private and Australian investors, while most New Zealanders lose out. Currently, our state assets are 100% Kiwi owned. This programme will mean New Zealanders lose their assets. Kiwis are getting asked to purchase what they already own - Labour leader David Shearer
The so-called promise of Kiwi mums and dads being first in the queue is a transparent exercise in deception. Kiwi mums and dads are first in the queue now - they own these assets outright. NZ First will use its influence on the next coalition government to buy back our state-owned power companies which are being flogged off by National and we are committed to buying back the shares at no greater price than paid by the first purchaser - New Zealand First leader Winston Peters
John Key is ignoring the wishes of those New Zealanders who overwhelmingly oppose asset sales. The Prime Minister is always willing to listen to the concerns of SkyCity Casino but seems unwilling to listen to millions of New Zealanders. This asset sales programme is about a transfer of wealth from the public of New Zealand to private interests - Green Party co-leader Russel Norman
Timetable
• Pre-registration opens today.
• The offer period is expected to open in mid-April and run for three weeks. The share offer document will be available at that time.
• Details of the loyalty bonus for New Zealand retail investors will be announced before the offer period starts.
• When the offer period closes, the institutional book-build takes place. Ministers then make share pricing and allocation decisions.
• Mighty River Power is then expected to list on the NZX and ASX.
