A number of Australian and Asian funds are believed to have made early orders for Meridian Energy's $NZ1.9 billion-plus ($1.7 billion) IPO, amid fears strong demand out of New Zealand will see the float's global allocation scaled back. Australian and offshore funds are expected to be allocated about $400 million of stock based on the government's goal to see >85% of the company owned by New Zealanders. The government, which is seeking to sell a 49% stake in its biggest power generation company, reported it had orders for 565 million shares (~ $NZ900 million) from retail brokers alone. The offer is split into a $NZ1 initial instalment price, with the remaining NZ50c to NZ80c due 18 months after listing. It is priced at a 13% plus implied gross yield for the first 12 months. The institutional bookbuild is set to close on October 23. (VIEW LINK)
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