Kiwibank IPO

[minimoke]

So the govt is sowing the seeds of this idea. Can't say I'm overly excited on the prospect. Could be worth a stag but not sure I could be too interested in a long term hold. Would need to see the numbers around the $8,500 in mortgages clearly seperated from NZ post first though.

If the govt is going to start flogging things off the first I'd like to see go is Kiwirail but I won't be buying even if a shotgun was held to my head.

What would get me interested is Meridian/Genisis/MightyRiver and Solid Energy. If they unbundled the employers and workers ACC accounts I'd biff a few dollars there as well. Other than that, I'm not sure there is much of interst.

[macduffy]

I can't get enthusiastic about this either.

Privatisations of NZ Rail, BNZ, Air New Zealand and Telecom havn't exactly been roaring successes and these were all full sales. The potential for govt interference in a partly privatised sale doesn't bear thinking about although being fully privately owned is no guarantee as shareholders of Telecom will testify.

I just don't see the listing of state owned assets helping the NZ market although NZX and brokers would no doubt welcome the extra turnover.

[Dr_Who]

I agree with McDuffy.

As a Kiwi, I would prefer to have Kiwibank in NZ. As an investor, I would like to participate in the banking and rural sector in NZ via the market. Under the right structure and managment, it can work. This is evident with AIRNZ currently doing very well. AIRNZ is run by a group of very innovative and proactive management team that is forward thinking.

I would like to see Kiwibank do an IPO with govt as major shareholder and a strategic forward thinking management team. Just keep it out of the greedy investment bankers hands *cough* Fay Richwhite *cough*.

[POSSUM THE CAT]

Dr Who Kiwi Bank seems to have a very able management team at the moment. So Floating 40% could be a good idea but with a maximum limit on the number of shares an overseas person or company may hold.

[Logen Ninefingers]

It'll never get off the ground. It's impossible to discuss 'asset sales' in any context; it's an emotive topic and people refuse to be rational about something they are intrinsically emotional about. The public has been totally conditioned to react in this way. Nzers have been conditioned to think left wing good, right wing bad. We are a largely socialist country now, it was just the extremes of the last Labour government that brought in a National government....Labour went further than the left-leaning electorate felt comfortable with. It's a temporary hiatus.
The public don't even look at the detail, so it's impossible to have a debate. It's like the mining - just a widespread knee-jerk response as soon as anything is put up for discussion. It's pointless National pursuing this any further.

[bull....]

Its a good idea as long as the govt retains ownership , the divs flow to mums and dads in nz and the govt and then thru the economy.
This should be the foundation of all asset sales that they remain majority nz owned , not like the past where dumb asses sold everything to overseas people who got all the divs etc.

As for the mining issue same applies nz should own the mines and mine them , dont be short sighted and sell to overseas people and take a small royalty , why take the pocket money when we can have the whole hog for nz benefit.

[Dubdee]

A number of investment banks have been pushing non voting ords for a while and I suspect that is the way to prevent the "horror" of a foreign takeovers. These are already legally available under the SOE act, but were only issud by BNZ when Crown owned. The problem is that the share is a pure play income deal with no takeover premium available so what the haircut against a true ord value is anyones guess.

Also care will be needed by investors if a future government tried to implement a social(ist) agenda at the expense of shareholders. Very easy for such shareholders to get screwed when profit isnt the sole focus

[Logen Ninefingers]

Yeah, and Bill English raised the scenario of a float to 'mums and dads' with govt retaining majority shareholding, and the headlines scream about National looking to flog off assets.
The majority of the public want National to be Centreist or 'Labour Lite'....that's the way they got elected: keep WFF, Interest free student loans, don't sell railways and other assets etc. Right-wing commentators will continue to get frustrated by what the see as National not 'spending their political capital' but they must realise National's support is fragile & largely illusory. Key is trying to achieve things where he can but it is a massive struggle in such a fundamentally left-wing country.

[macduffy]

Also care will be needed by investors if a future government tried to implement a social(ist) agenda at the expense of shareholders. Very easy for such shareholders to get screwed when profit isnt the sole focus

Very true, but govts don't need to retain ownership to screw shareholders. Just ask TEL shareholders or, across the water, shareholders in Telstra, BHP, RIO etc.

[peat]

kinda weird that the CEO resigns right now ??? (after the raising of the idea of floating)
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10647511
"Knowles said his time as chief executive had been memorable and he now wanted to take a break and consider the future.
Customers had shown "fierce loyalty", clearly sharing "the dream of a New Zealand-owned bank for New Zealanders".

[tsb]

How Kiwibank would seperate from NZ Post's buildings/staff would be interesting. Key/English could well be kite flying.

If KiwiBank was money surley the way to go is for NZ Post to float off their 24% of Datacom?

Cant see why a government agency wants 24% of a private computer firm - it cant be part of their core busines.

[peat]

cant imagine Datacom being floated tsb
its a fiercely private and highly profitable company. existing owners wouldnt want to share that.
And they dont have any need to as Datacom has probably overcome its short term capital requirements problem from building a $25mill datacentre in the last couple of years. That centre is now filling up with paying customers and is cash flow positive after only one year. Apparently Google wanted to fully populate it but were turned down (as other customers were likely to provide more ancillary opportunities) .

[belgarion]

If NZ Post wanted out of their share of 24% of Datacom there would be some very enthusiastic buyers - me especially (at the right price!)

[foodee]

If/when Kiwibank becomes a 'significant business' bank and separate into its own
indentity instead of being linked to NZ Post shops than there is huge potential for
growth.
Just getting all govt transactions away from Westpac will be enormous, not
to mention farmers etc. It's about time we strike back!

cheers

[macduffy]

Does anyone here have experience of Kiwibank as a small business owner?

Friends of mine have recently shifted their accounts from Kiwibank in frustration at getting any attention for other than simple across the counter transactions. It seems that appointments have to be made for a lot of matters which are routinely handled in the traditional trading banks and that lengthy delays often result. Not surprising I guess when the specialist banking staff aren't available at Postshops.

Incidentally, I would think that any sale of Kiwibank would probably be made through sale of the parent, NZ Post. Effectively, two sales for the political "cost" of one!

[Kiwi]

You are right on the button bull, that's what ive been thinking all along.

[fungus pudding]

So the govt is sowing the seeds of this idea. Can't say I'm overly excited on the prospect. Could be worth a stag but not sure I could be too interested in a long term hold. Would need to see the numbers around the $8,500 in mortgages clearly seperated from NZ post first though.

If the govt is going to start flogging things off the first I'd like to see go is Kiwirail but I won't be buying even if a shotgun was held to my head.



And I wouldn't touch Kiwibank with a gun at each side of my head. They haven't had to compete on any real banking level, and I'd be very suprised if an audit of their loan book looked any good. I suspect some of their lending has been at the rubbish end of the market.

[CJ]

And I wouldn't touch Kiwibank with a gun at each side of my head. They haven't had to compete on any real banking level, and I'd be very suprised if an audit of their loan book looked any good. I suspect some of their lending has been at the rubbish end of the market.But imagine in the Govt banking was moved to Kiwibank. Add to that they want to get into business banking.

My only concern would be the subsidizing by post shop though the use of their shops.

[peat]

I'd be very suprised if an audit of their loan book looked any good. I suspect some of their lending has been at the rubbish end of the market.
saw a blackboard outside one of the Kiwibank branches today (NZPost) saying Low or NO deposit home loans.
Thats pretty risky these days.

[GTM 3442]

saw a blackboard outside one of the Kiwibank branches today (NZPost) saying Low or NO deposit home loans.
Thats pretty risky these days.

Not necessarily. Not if you have good risk management processes in place.

[Kees]

saw a blackboard outside one of the Kiwibank branches today (NZPost) saying Low or NO deposit home loans.
Thats pretty risky these days.

Not necessarily. Not if you have good risk management processes in place

and you have no money to loan anyway because the govt aint given them any.

[GTM 3442]

saw a blackboard outside one of the Kiwibank branches today (NZPost) saying Low or NO deposit home loans.
Thats pretty risky these days.

Not necessarily. Not if you have good risk management processes in place

and you have no money to loan anyway because the govt aint given them any.

Um, if they had no money, would they be offering to lend it ?

[Kees]

They are offering but not lending this according to a lending person that I know.
But who cares .