Highlights

  • Contact Energy’s Retail Offer raised NZD125M, including NZD50M in additional oversubscriptions.
  • A total of 29,727 shareholders participated, surpassing the 2021 retail offer engagement.
  • New shares under the Retail Offer will trade on NZX from 13 March and ASX from 16 March 2026.

Contact Energy Ltd (NZX:CEN) announced that its non-underwritten retail share offer has closed oversubscribed. Eligible shareholders submitted applications totaling approximately NZD251M. The Retail Offer allowed shareholders registered in New Zealand or Australia as of 7.00pm NZDT / 5.00pm AEDT on 13 February 2026 to apply for up to NZD100,000 and AUD41,000 worth of new shares, respectively.

In response to high demand, Contact exercised discretion to accept an additional NZD50M in oversubscriptions, bringing the total Retail Offer proceeds to NZD125M. Applications came from 29,727 shareholders, reflecting higher participation compared to Contact’s 2021 retail offer of 18,667 shareholders. Scaling of applications will be carried out as outlined in the Retail Offer Document dated 19 February 2026. Share allocation confirmations are expected on or around 19 March 2026, with refunds for any surplus application amounts to follow within five business days post-settlement.

Placement and Issue Price Details

The Retail Offer forms part of a broader equity raise announced on 16 February 2026. This includes a fully underwritten NZD450M placement of new shares to institutional shareholders across New Zealand, Australia, and select other jurisdictions.

Shares issued under the Retail Offer are priced at NZD8.75 for New Zealand shareholders, with the AUD equivalent being AUD7.36 for Australian shareholders. This pricing matches the issue price for the institutional placement. Settlement of the Retail Offer is scheduled for 13 March 2026 on NZX and ASX, with trading expected to commence on NZX the same day and on ASX on 16 March 2026. New shares will rank equally with existing ordinary shares.

Proceeds to Support Renewable Projects

Proceeds from the equity raise will advance the execution and potential upsizing of renewable energy projects aligned with the Contact31+ strategy. These projects aim to expand the company’s operational footprint and facilitate growth in renewable energy initiatives.

Dividend Reinvestment Plan (DRP) Strike Price

For the 2026 interim dividend, shares allotted under Contact’s DRP will have a strike price of NZD8.75, with issuance scheduled for 25 March 2026. The Board exercised discretion to calculate the DRP strike price as the lower of:

  • The volume-weighted average sale price over five trading days from 18 February 2026, less a 2% discount, and
  • NZD8.75, corresponding to the Retail Offer issue price.

The relevant exchange rates are AUD/NZD 1.20252434 and NZD/AUD 0.83158400. An updated ASX Appendix 3A.1 will be released separately.

Contact Energy Stock Performance
Contact Energy shares closed at NZD9.32 on 12 March 2026, up 0.0100 (0.11%) for the day. The stock declined 0.06 (0.64%) over the past five days and 0.46 (4.70%) over the past month.

Broker Consensus
According to EODHD/Others data as of 12 march 2026, Analysts hold a positive view on Contact Energy Ltd, with the broker consensus at 2.25 (BUY). The average target price of NZD 10.63 suggests a potential upside of about 14.55%. Expected growth is supported by stable electricity demand, efficient operations, consistent generation revenue, and a solid customer base, contributing to steady earnings and financial stability in New Zealand’s energy sector.

Contact Energy’s retail offer has closed oversubscribed, raising NZD125M and surpassing prior participation levels. Shares will begin trading on NZX and ASX in mid-March, with proceeds supporting renewable energy projects under the Contact31+ strategy. The DRP strike price is aligned with the Retail Offer price, and allocation details will be confirmed to shareholders by 19 March 2026.

FAQs

Q1: When will the new Contact shares start trading on NZX and ASX?
A:- New shares will commence trading on NZX on 13 March 2026 and on ASX on 16 March 2026.

Q2: What is the issue price for shares under the Contact Energy Retail Offer?
A:- The issue price for the Retail Offer shares is NZD8.75 and AUD7.36 for Australian shareholders.

Q3: How much did Contact Energy raise through its Retail Offer including oversubscriptions?
A:- Including oversubscriptions, the total proceeds raised under the Retail Offer amount to NZD125M.