More than 113,000 Kiwis have invested in shares in Mighty River Power, paying $2.50 a share, meaning the sale raises $1.7 billion for the Government.

New Zealand institutional investors bought $300 million worth of shares. There was strong international interest, Finance Minister Bill English said.

According to English 86.5 per cent will be New Zealand owned, with 26.9 per cent by New Zealand retail investors and 8.6 per cent by New Zealand institutions.



The shares will be scaled on a progressive basis, meaning 80 per cent of individual buyers will get all the shares they applied for.



"This is an outstanding result and fulfils our commitment to ensuring at least 85 to 90 per cent New Zealand ownership of the company," English said.



"The share offer will raise $1.7 billion, which is a very good return for New Zealand taxpayers.

"Those proceeds will go into the Future Investment Fund, allowing the Government to control debt while continuing to invest in public assets. More details will be announced in next week's Budget."

Mighty River will list on the NZX at 12.30pm on Friday. The size of the share register will make it by far the most widely held shares on the NZX.

State Owned Enterprises Minister Tony Ryall said Labour and the Greens "did their best" to spoil the plan by announcing plans to regulate the power industry during the offer period.

English said there were indications the opposition's power policy had cut the amount the sale had reaped from the Government, with market estimates that shares would sell for $2.70 to $2.80.

''Probably the most disappointing aspect though was that it prevented a whole lot of first time New Zealanders from taking up their first share investment because they were worried."

He claimed that as time went on, both retail and institutional investors became ''increasingly skeptical that Labour and the Greens would be able to implement that policy''.

The Greens dismissed the sale as a ''con'' saying only 3 per cent of Kiwis had opted to buy shares.

"The charade is over: 'Mum and dad' New Zealanders haven't bought the shares; the big finance institutions and foreign corporates have," said co-leader Russel Norman.

"The fact that Kiwi retail investors are having their allotments scaled back so National can sell shares to foreign corporates shows what a farce this has been."

Some 10 million shares have been set aside to satisfy the loyalty bonus.

The final price was set by the Government based on bids from institutional investors yesterday and today.

The float of Mighty River is the first of three partial power company sales planned by the Government. Sources say Meridian Energy will almost certainly be "the next cab off the rank".

"I'd be gobsmacked if it wasn't Meridian," said one.

The other state-owned power company, Genesis Energy, "probably has more hairs on it".