Listed infrastructure company Infratil is to dual list on the Australian stock exchange, positioning itself to appeal to a wider range of institutional investors with an eye to raising capital in the future, according to brokers.
Infratil has a market capitalisation of $965 million, and has the $696.5 million purchase of Shell assets earlier this year on its balance sheet as a debt.
It plans to list on the ASX by the end of the month.
Its shares remained steady around $1.60 after the announcement.
Craigs Investment Partners broker Peter McIntyre said Infratil was looking to appeal to a wider investment audience, which would provide greater liquidity, and to garner more support from larger institutional investors.
"Infratil being on the ASX means it should have a greater ability to raise capital at some future date," Mr McIntyre said.
Infratil's largest asset, at 25%, was its 51% stake in listed TrustPower, worth $1.1 billion.
It also has Infratil Energy Australia, a 100% stake worth $256 million; a 66% stake in Wellington Airport worth $289 million and a 100% stake in New Zealand Bus worth $214 million.
Mr McIntyre said while stakes in airports Auckland and Lubeck, Germany, were sold for $87.2 million, the overall European airports performance, including the remaining stakes in Glasgow, Prestwick and Kent, had devalued from $222 million in 2009 to $138 million in 2010.
"The European airports have really been a major drag for Infratil ... it has been underperforming for a couple of years, considering the defensive [utilities-type] assets it holds," Mr McIntyre said.
Additionally, in late March, Infratil reached an agreement to purchase 50% of Shell New Zealand's petro-chemical assets for $696.5 million.
New Zealand's Super Fund owns the other half.
Mr McIntyre said the company had "lofty" goals to deliver a 20% return on assets.
While having delivered a "very good" 27% return over 10 years, with shares rising from 58c to $1.60, during the past two years that performance was "dragged down" to -14% return.
