Z Energy plans to raise NZD900 million in August IPO

Infratil and the New Zealand Superannuation Fund, joint owners of petrol station chain Z Energy, said they expect to list 50-60% of the company on the New Zealand Stock Exchange (NZX) after an initial public offering on August 19 which aims to raise up to NZD900 million (US$725.6 million).
The shares of Z Energy, which were formerly the Shell chain of service stations, will be priced between NZD3.25 (USD2.62) and NZD3.75 (USD3.02).
Infratil is a specialized NZX-listed infrastructure investor and the NZ Superannuation Fund invests money, on behalf of the Government, to help pay for the increased cost of future government super entitlements.
The two bought the business from Shell in April 2010 when the company decided to sell its downstream assets in New Zealand.
Since the purchase, Z Energy said it has invested NZD94 million (USD75.7 million) in storage facilities, new retail service stations, commercial fuel efficiency programs and on research and development into alternative transport fuels.
Z Energy has a 17.1% stake in Refining NZ, which runs New Zealand’s only oil refinery. It owns more than 200 service stations and 90 truck stops, as well as a 25% stake in Loyalty New Zealand, which runs Fly Buys. Z Energy also owns pipelines, terminals and bulk storage terminal infrastructure around the country.
Infratil chief executive Marko Bogoievski said Z Energy had strong cash flows, a good dividend outlook and had identified a range of potential future growth areas, including new retail service stations, customer offers and enhancements to Z’s terminal infrastructure.
Z Energy will be New Zealand’s first listed transport fuels company and is expected to be among the top 20 companies on the NZX main board.