Press Release – INFINZ
28 February 2013 For Immediate Release Infinz Welcomes The Imminent Float Of Mighty River Power New Zealands leading financial organisation, the Institute of Finance Professionals New Zealand Inc. (INFINZ) says the Governments imminent float of …
28 February 2013
For Immediate Release
Infinz Welcomes The Imminent Float Of Mighty River Power
New Zealand’s leading financial organisation, the Institute of Finance Professionals New Zealand Inc. (INFINZ) says the Government’s imminent float of Mighty River Power, following yesterday’s unanimous decision by the Supreme Court, is a positive development for New Zealand’s capital markets.
“The float of Mighty River Power would be a signifcant development for NZ’s capital markets,” says INFINZ Executive Director Jim McElwain.
Current market conditions are very favourable for new listings, with the NZX50 being up almost 25% during 2012 and there being unsatisfied demand for recent issues such as for the Fonterra Shareholders’ Fund Units.
“With greater confidence given to the market, the time has now come for Kiwi mum and dad investors to be given a wider range of options to invest in.”
“An imminent float of Mighty River Power would therefore be very timely,” says McElwain.
“It would also assist in building NZ’s capital markets. The value of all companies listed on the NZ equity market has slid from around 60% of GDP as recently as the mid-90s to just over 30% today.
“The float of a substantial company such as Mighty River Power would be a key step in reversing this slide in the capital markets, while full implementation of the mixed ownership programme has the potential to boost the size of the NZ sharemarket by 10 per cent.”
McElwain says greater depth and interest in our capital markets would create more favourable conditions for mid-sized Kiwi companies to list and raise capital to grow.
“More investment would mean more jobs and more Kiwi companies being owned by New Zealanders. A vibrant capital market is an essential element to achieving the aspirations we all have as New Zealanders for a better lifestyle.
“The float of Mighty River Power cannot come soon enough,” says McElwain.
INFINZ is the leading industry body for capital markets professionals in New Zealand. INFINZ has a membership of approximately 700 individuals drawn from across the capital markets and includes treasury professionals, investment analysts, fund managers, bankers, lawyers and students. www.infinz.com