Market players say Meridian Energy's initial public offer price is fair and reflects the lessons the Government has learned from its listing of Mighty River Power.

The deal will raise $1.88 billion instead of the maximum $2.25 billion for the 49 per cent share, and values Meridian at $3.84 billion.

The chances of the Govt raising $5 billion to $7 billion from its partial assets sales is looking dimmer after details of No 2 sale, Meridian, were announced last night.

Meridian shares will be issued at a listing price of $1.50, the bottom of the indicative range, and with a much smaller investor pool than the government had hoped for.

Sources said the Meridian general offer could attract up to $280 million which, when taken with the broker allocation of $565m, could see up to $850m out of the $1.25 billion offer in retail ownership.

Closing day for the Meridian offer, the Vector media blackout, Diligent and Abano.

People contemplating investment in Meridian Energy shares need to think long and hard about political risk, writes Brian Fallow.

Independent research house Morningstar has come out in favour of the upcoming Meridian Energy float, saying it is likely to appeal to long-term investors seeking yield.

Prime Minister John Key has confirmed the Citizens Initiated Referendum over asset sales will take place in late November and early December this year.

The Government says there has been strong early demand for its Meridian share offer, which opens today.

A plan to produce power for 250,000 homes from tidal turbines in Kaipara Harbour, north of Auckland, has been put on hold.

Close to half of the Meridian share offer has been claimed by New Zealand retail investors ahead of the offer opening tomorrow.

Meridian Energy's IPO is all about political risk.

The Government has driven a harder bargain in setting the fees for selling up to 49 per cent of Meridian Energy.

The Shareholders Association has welcomed a move by the stock exchange to help fund independent research on the Meridian Energy sharemarket float.

The Government has today announced a timeline for the Meridian float, in which it hopes to raise around $2.3 billion.

The Government postponed an announcement this week on the sale of shares in Meridian Energy, sparking doubts about whether the sell-off will go ahead on schedule in November.

Treasury advised the Government not to pay the owners of the Tiwai Point smelter to keep the business running, documents released this afternoon show.

Investors in soon-to-be-floated Meridian Energy could receive a net dividend yield of up to 6.8 per cent, based on analyst valuations.

No sooner had Mark Binns taken over as chief executive of Meridian Energy in January last year, than he was confronted with the lowest inflows into its hydro lakes in more than 80 years.

Meridian Energy - the jewel in the Government's portfolio of crown assets - may be worth nearly $2 billion less than it was valued at a year ago when it is finally listed.

A big questionmark remains as to the wisdom of rushing another and bigger float in a state-owned generator so soon after Mighty River Power, writes John Armstrong.