Capital Properties Public Offer Closes

  • Tony Ryall
State Owned Enterprises

As the public offer of shares in Capital Properties New Zealand closed at 5.00pm today, State Owned Enterprises Minister Tony Ryall said there had been a strong response from New Zealanders to the second share offer by the Government.

"The broad-based demand for Capital Properties New Zealand shares confirms there is strong public support for the new approach this Government has taken to asset sales.

"We want New Zealanders to have the chance to participate in investing in quality Government businesses. Previous governments never gave the public a look in.

"While exact numbers of applications are not yet available, Capital Properties New Zealand will have the largest number of investors of any New Zealand property company and one of the biggest share registers outside of the Top 10 listed companies.

"Given the high level of interest in the offer, scaling back of applications may be necessary. Subject to final demand, the Government will strive to ensure that all those who have lodged valid applications will receive shares.

"The offer to New Zealand and overseas institutions and sharebroker syndicates is open Thursday and Friday and strong bidding is expected. This offer is largely expected to be taken up by New Zealand and Australian institutions.

"The competitive bidding will set the price for the final instalment, but public investors who are allocated shares under the current offer and hold until the final payment will not pay more than 50 cents per share for the final instalment.

"We expect that an announcement will be made next week confirming the price of the final instalment and advising applicants of the shares that have been allocated to them," Mr Ryall said.