IPO
In July 2013, shares in Z Energy were offered in an IPO which was priced at $3.50 per share.[15] That IPO valued Z Energy at $1.4 billion. This value was almost four and half times the net cash outlay by Infratil and NZ Super Fund to acquire it three years earlier.
The IPO prospectus showed that Z Energy expected to declare total dividends to shareholders equivalent to 6 cents per litre of fuel sold in 2013–14. This includes dividends to be paid to Infratil and NZ Super Fund immediately prior to the IPO.
Tim Hunter, deputy editor of the Fairfax Business Bureau, said that in completing the IPO, Infratil and NZ Super Fund will "have pulled off a piece of exceptional business".[16]
Z Energy issued a prospectus for its non-underwritten IPO on 25 July 2013. The IPO will raised $840 million from a mixture of shares sold by the current parent and new shares issued.[15]
All of the proceeds went to Infratil and New Zealand Superannuation Fund, including funds raised by the issue of new shares in Z Energy Limited. Z Energy purchased the 17.1% stake in NZ Refining for $100 million from Infratil and New Zealand Superannuation Fund after the IPO.
Following the IPO, Z Energy has 400 million shares in total. The IPO price was $3.50. This provided a market capitalisation of $1,400 million.[15]
That market value is almost four and half times the net cash outlay of $320 million by Infratil and New Zealand Superannuation Fund to acquire Z Energy in 2010.
Infratil and New Zealand Superannuation Fund retained a combined stake of 40% in Z Energy. Z Energy is forecasting sales to fall to 2,476 million litres in 2013–14. This is 7% less than the volume in 2010-11 after addition of the five new service stations.[15]
As the basis for Prospectus forecasts, Z Energy's profit margin was expected to increase by 1.2 cents per litre in 2013–14. The Prospectus forecast a dividend of $88 million for the 2013–14 year which is equivalent to 3.5 cents per litre sold. In addition, Z Energy paid $70 million in dividends to Infratil and New Zealand Superannuation Fund earlier in the 2013–14 year. That is a total of 6 cents in dividends per litre in 2013–14.[15]
