Govt criticised for cutting AFAs out of sales
Genesis, the last of the three power gentailers to be partially sold by the Government, listed before Easter.
The floats received a lot of public attention but AFAs’ access to them was limited.
That was most noticeable in the case of Mighty River Power and Mercury, where big broker firms formed the retail syndicate, and to a lesser extent in the case of Genesis, where those who are licenced as NZX sharebrokers could take part in the bookbuild.
Adviser Chris Lee, who was involved in the offers, said the Government had been unwise in its distribution model. “If the Crown wanted the widest possible spread of investors it should have asked every competent financial adviser to register their interest in participating in the distribution.”
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