(EnergyAsia, August 29, Thursday) — Z Energy, New Zealand’s main downstream oil company, said it raised NZ$840 million through a public offer of its share at NZ$3.50 apiece. (US$1=NZ$1.26).

NZSF Aotea Limited sold 60% of the company at the midpoint of a predetermined NZ$3.25-to-NZ$3.75 range, giving Z Energy a market value of NZ$1.4 billion. With the successful offering, NZSF Aotea, jointly owned by Infratil Ltd and New Zealand Superannuation Fund, retains a 40% stake.

Z Energy owns and operates a chain of around 300 service stations and truck stops, over 40 sites in its general aviation network and a 17% share in the country’s only refinery.

Z Energy said its net earnings have grown from NZ$157 million in FY2011 to NZ$196 million in FY2013 since shareholders acquired the business from Shell in April 2010. Since then, the company has invested NZ$94 million in building storage tanks and terminals, retail service stations, commercial fuel efficiency programmes and research and development into alternative transport fuels, as well as transitioning to being a fully New Zealand-owned and managed company.

Chief executive Mike Bennetts said:

“When we established Z Energy, we set out to build a company that delivered what our customers told us they wanted, and that invested in New Zealand’s transport fuel supply infrastructure.

“Independent research conducted by Colmar Brunton, commissioned by us, tells us that Z is the most preferred retail fuel brand. While brand preference does not automatically equal sales, it gives us confidence we are on the right track.

“As a local company, we’re committed to a different way of doing business. We committed to communicate clearly and transparently to everyone who owns us, who uses our fuels, who works for and alongside us or who is simply interested in what we do and why.”