Telstra prospectus registered

New Zealand investors wanting to get a piece of Telstra - Australia's biggest share float - are being advised to get their applications in quickly.

This A$14 billion offer opens on October 15 and is scheduled to close on November 3, however the vendors (the Australian Government) have the option of closing the float early, unlike the Colonial share offer earlier this year.

There was such strong demand for the Colonial offer that it was closed off before the scheduled date. However, the Australian Securities ordered it be reopened until the advertised closing date as there was no provision for an early close.

Telstra, while being the largest ever float in Australia, is also unique in that it is the first Southern hemisphere offering that will be tri-listed on the Australian, New Zealand and New York Stock Exchanges.

With huge international interest and at least 65 per cent of the offer reserved for Australian investors there is a strong likelihood that a two-tier market will develop for this share over time.

Since international investors will have to compete here and in New York for just a third of the script the potential is there for a demand driven premium to develop.

New Zealand brokers report receiving a huge number of calls about the Telstra offer. There is no firm allocation for New Zealand investors in the float; instead their applications will be treated as part of the Australian pool.

Telstra shares are due to be listed on November 17.