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Jan. 27 (Bloomberg) -- Goldman Sachs Group Inc., Macquarie Group Ltd. and a partnership of First NZ Capital and Credit Suisse Group AG will manage the initial public offering of Mighty River Power Ltd. as New Zealand’s government starts the biggest round of state asset sales in more than 20 years.
The Treasury named the firms today as joint lead managers for the sale of a minority stake in the Auckland-based energy company. The IPO, planned for the second half of 2012, may raise about NZ$1.5 billion ($1.2 billion), people familiar with the matter have said.
Mighty River and four other divestments may raise as much as a combined NZ$7 billion over the next three years, the government estimates. Goldman Sachs, Macquarie and Credit Suisse were picked from a group of six eligible firms that includes UBS AG and alliances between Forsyth Barr Ltd. and Bank of America Corp.’s Merrill Lynch, and Deutsche Bank AG and Craigs Investment Partners, according to today’s Treasury statement.
“Firms not successful in the tender for work on the Mighty River Power transaction will be able to compete for roles in subsequent transactions,” the Treasury said. “Treasury will immediately look to contract high quality broking firms and other distributors with channels to retail investors.”
Investment banks managing a state deal may earn about 1.5 percent of the proceeds in fees, compared with an average 2.5 percent to 3.5 percent for IPOs of privately owned companies, according to bankers who declined to be identified as they’re not authorized to discuss commissions.
Based on an average 1.5 percent commission, underwriters may earn as much as NZ$105 million in fees on the five state sales.
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