New Zealanders preregistering for shares in Mighty River Power are eligible for up to 25 per cent more shares than non-registered buyers, the Government has announced.

Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall announced the incentive at the official launch of the $1.1-$1.4 million three-week pre-registration period for the share offer in Auckland today.

The Government's three week pre-registration period for the Mighty River Power shares opened today.

'The Government is committed to ensuring New Zealanders will be at the front of the queue for shares,” says Bill.

'In that case, those who pre-registered may get up to 25% more shares than those who did not.”

The Government has announced that New Zealanders applying for up to $2000 of shares will be guaranteed the amount.

However, if demand exceeds the number of shares available, then New Zealanders who request more than $2000 worth will have their bid scaled back.

Tony says pre-registration is not an obligation to buy shares rather an expression of interest.

'Anyone pre-registering won't be asked for payment at this stage. That opportunity will come next month and there is no hurry to pre-register so long as it's done by 22 March.”

Only eligible New Zealand applicants, not institutional investors, are entitled to apply for shares in the retail offer and must supply a valid IRD number, valid New Zealand bank account, New Zealand address and proof of residency in New Zealand.

To pre-register for shares, New Zealanders can go to the website www.mightyrivershares.govt.nz or call 0800 90 30 90.

Those who pre-register will automatically receive a copy of the share offer document after it has been lodged, which is expected to be in early April.

Others will be able to download it from the website or call the 0800 number to request a hard copy, so long as they are in New Zealand when they do so, says Bill.

The ministers also previewed the television and print advertising for the pre-registration period – part of a substantial advertising and communications campaign designed to raise awareness of the share offer and explain how to pre-register.

Tony says the website for pre-registration and for the share offer itself has been designed to restrict people from outside New Zealand from participating.

'The Mighty River Power share offer has been designed to achieve widespread New Zealand ownership. We envisage that, with the Government's majority shareholding, total New Zealand ownership will be 85-90 per cent of the company after the share offer.

'We want to encourage everyday New Zealanders to register their interest – and the communications campaign will include a strong investor education element for those unfamiliar with the share-market. We strongly recommend investors obtain their own independent financial advice.”

Bill says from the Government's perspective it makes sense to use this opportunity to reorganise its assets and shift capital to priority areas without having to borrow more.

'It is also another important step in helping the Government's programme to control debt.”

The pre-registration period will run through until March 22, around three weeks before the offer period starts in mid-April for three weeks, at which time a share offer document will be available.