According to the latest reports, the Meridian Energy claims that Bank of New York Mellon Corp. has just 3.98% share of the company, whereas, on the other hand the bank claims a much higher share in the Meridian Energy.
The company was listed in the New Zealand stock exchange on Tuesday and says that the bank is claiming more than the actual figures.
To encourage the government's plans to close a budget shortage by selling resources, Meridian Energy Ltd. rose on introduction in New Zealand's largest privatization.
As per a new report, the New Zealand government has raised an amount of $1.6 billion in its Meridian Energy Ltd IPO. The government had done this by lowering the prices of shares so as to help ensure a strong performance.
About one million more Meridian Shares have been released in order to make the per share price $1. This is the first session of Meridian Energy Stake's sell out. Second payment of about 60 cents will require to be paid after 18 months.
Offer documents for the IPO were released today. It was mentioned in the documents that extra 963 million shares were issued in order to bring down the price per share.
Prime Minister John Key has said that its asset sales programme seems to just raise $5billion. The asset sales programme was estimated to raise somewhere between $5 billion and $7 billion, which could be funded for public infrastructure.
However, it now appears to reach the lowest limit only.
The first IPO of Meridian Energy Ltd, a state-owned power generator, will take place in the November. As much as 49% stake of the company worth 6.5 billion NZ dollar will be sold out.
Earlier this year, the government had sold the minority stake of Mighty River Power Ltd. and Z Energy. The government raised NZ$1.7 billion and NZ$840 million through the sale of stake in these two companies, respectively.
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