22 Jun 2011

NZX boss sees benefit in partial float of SOEs

3:22 pm on 22 June 2011

The head of the New Zealand stock exchange does not expect partially privatised state-owned assets to compete with listed companies for investors' funds.

Instead, Mark Weldon expects investors burnt by the collapse of finance companies to consider a new home for their money.

Mr Weldon says if done correctly, partial floats of SOEs such as Meridian Energy and Solid Energy could boost participation in the capital markets by introducing hundreds of thousands of new investors.

He says funds for investment in the state-owned enterprises are unlikely to come at the expense of already listed firms, and a partial float could also result in more brokerage firms establishing themselves in New Zealand.