“When we commenced this process we were confident it would be well received, however the demand has exceeded our expectations,” said Browning.

“The strong demand does mean that applicants have had to be scaled back from the amounts they applied for.”

Browning also said the IPO received an “enormous” amount of applications in its final two days, after Alinta gave notice of its intention to close early.

He said the pricing of AIH stock was locked at the top of the target range during the institutional book build process prior to the offer opening. The units will be priced at $3.20 each, meaning Alinta receives $711 million in two instalments after fees.

Alinta was now able to remove $1.7 billion in assets and $1.2 billion in debts from its balance sheets, according to Browning.

But Alinta will maintain strong links with AIH by keeping a 20% shareholding, which it said could diminish over time.

Browning said the AIH transaction would provide Alinta with both strong financial and P&L benefits.

“It strengthens our cash position and gearing ratios, and is also strongly earnings accretive,” he said.

“It has allowed us to unlock the capital we invested in the Duke assets and also the value we have enhanced since acquisition.”

Meanwhile, Browning also upgraded Alinta’s net profit after tax for 2005 of between $95 million and $100 million, from its initial $87 to 92 million. He said this new figure excluded the sale of the former Duke assets into AIH.

“Our WA retail sales and gas transmission segments are probably the two leading contributors to the upgrade,” he said, alluding to the strong gas throughput on the Eastern and Queensland gas pipelines and increased gas consumption in Western Australia.

Despite Alinta’s $13 million projected NPAT increase for this year, Browning said the company would retain its original $140 million forecast for 2006.