Strong Demand For Contact Shares

Demand for Contact shares from retail investors has been very strong, Treasurer Bill Birch, SOE Minister Tony Ryall and the Minister Responsible for Contact Energy, Lockwood Smith, said today.

"We are extremely pleased with the level of response from New Zealanders to the Contact Energy share offer and, with three days to go, it's likely many more New Zealanders investors will apply for Contact shares," the Ministers said.

"The retail offer closes at 5pm this Friday - and applications have to arrive by that time to be accepted. Anyone wanting Contact shares should send in their applications as soon as possible."

The Ministers said that demand from institutional investors has also been strong.

"The final price of the Contact shares is being set in a book building process, where financial institutions bid for shares. An indicative price range was set at $2.40 to $3.00 per share to help with this process.

"Because of the current strong demand for shares from all investors, we expect the share price will be set towards the top of, or even above, this indicative price range," Ministers said.

The final price will be determined once all of the institutional bids are received on 7 May.

The final price and allocation of shares will be announced by Ministers by 5pm on 10 May, and details of allocations will be published in major daily newspapers around 12 May. Shares will begin conditional trading on the New Zealand and Australian Stock Exchanges on 11 May.