New Zealand’s Z Energy to launch IPO

New Zealand’s Z Energy is seeking to attract investors for a potential NZ$660 million (US$538 million) initial public offering. Infratil Ltd. and NZ Superannuation Fund, which own the company, are planning to list up to 60% of Z Energy in the third quarter.
The company supplies about 30% of New Zealand’s fuel and owns a 17.1% stake in the country’s only refiner, Refining NZ.
First NZ Capital and Goldman Sachs have been hired to arrange the IPO. Deutsche Bank/Craigs Investment Partners and Forsyth Barr are joint lead managers.
Infratil and NZ Superannuation each bought a 50% stake in the company from Shell in 2010 for NZ$696.5 million (US$568 million), then rebranded it. Infratil has a book value of NZ$324 million (US$264.5 million) on its half of Z Energy; however, Deutsche Bank valued the entire business at NZ$1,146 million (US$935.6 million) in March.
Z Energy reported revenues of NZ$3.1 billion (US$2.53 billion) in the fiscal year ended September 30, 2012. Earnings before interest, tax, depreciation and amortization were NZ$196.6 million (US$160.5 million).