A large scale fund manager is warning the share market could become top heavy with energy stocks after Meridian Energy lists.
The Government is sale of up to 49% of the country's biggest electricity company is the second partial privatisation of state-owned energy firms this year.
The deadline for applying for shares expired on Friday and the initial share price will be revealed on Wednesday.
A spokesperson for Devon Funds Management, Phillip Anderson, fears addition of Meridian to the stock market, along with Mighty River Power, Contact Energy and Trustpower, could expose investors to some risks.
He says more than 20% of the exchange will now be in energy stocks.
Mr Anderson says stocks of one type tend to move together, so people should not be too exposed to one sector.