Mighty River set for ASX listing - Oz media

including the Government's majority stake, it was expected up to 90 per cent of shares in state-owned enterprises would be held by New Zealanders. Photo / Supplied

Mighty River Power is to be listed on the Australian stock exchange as well as New Zealand's NZX sharemarket according to an Australian media report.

The investment banks running the sale process Credit Suisse First NZ Capital, Goldman Sachs and Macquarie Group met this week following the Supreme Court ruling on Wednesday which cleared the way for the float, the Australian Financial Review reported.

"The deal will result in Mighty River being dual-listed in Australia and New Zealand" it said.

"The theory is Mighty River will be reasonably priced to ensure the subsequent floats are well received.''

The report goes on to say a 49 per cent stake in Meridian Energy, worth $3.18 billion, is tipped to be the next company to be partially privatised under the mixed ownership model.

Many of New Zealand's top companies are "dual-listed" on the Australian Stock Exchange as well as the NZX, including Fletcher Building, Auckland International Airport, Sky City, Telecom and The Warehouse.

A spokesman for Finance Minister Bill English said Mighty River's "primary" stock exchange listing would be in New Zealand.

"Decisions beyond that will be announced after they have been confirmed by ministers. As we've promised, the share offer will put New Zealanders firmly at the front of the queue for shares and ministers will decide who receives the shares in the IPO."

Labour's State Owned Enterprises spokesman Clayton Cosgrove said English needed to tell the public "whether he is planning to flog off their assets on the Australian share market, and if he is, why he thinks it is a good idea".

"The Finance Minister keeps promising that Kiwis will be at the front of the queue to buy shares in the power companies that they already own as taxpayers. And he has insisted that the first share float is likely to be oversubscribed. So if Kiwis get first dibs and demand is going to exceed supply, why list the company in Australia too?"

At its Monday meeting Cabinet is expected to give its final sign off to legislation allowing the partial privatisation of Mighty River and to a timetable for the share float which it wants completed before mid year.

English has said potential investors may be able to preregister or indicate their interest in buying shares by the end of next week.