Investment bank UBS won the role on Wednesday to sell a $NZ1.3bn stake in Auckland Airport on behalf of the Auckland Council.
It is understood that 163m shares were being offered in the market at $NZ8.08, which was the last traded price.
The nil discount offer equates to $NZ1.3bn.
Term sheets were sent out to investors.
It comes after DataRoom revealed on Tuesday night that council’s Auckland Future Fund was positioning for a sale as early as Wednesday.
Auckland International Airport told the market on Wednesday morning that Auckland Future Fund Trustee Limited has invited a relatively large group of brokers to submit offers for a parcel of 163m shares, equating to 9.71 per cent in Auckland Airport, and they were contacted on Tuesday night.
DataRoom understands that nine banks all pitched, including Barrenjoey, Craigs, Forsyth Barr, Goldman Sachs, Jarden, Macquarie Capital and UBS.
Infrastructure investors like QIC and NZ Super would likely be offered stock.
The council is the trustee of the Auckland Future Fund, which was established by the Auckland Council on September 27 as a trust for the benefit of Auckland.
“Should an acceptable offer be received by the Trustee, the Sale Shares will be vested by the Council in the Auckland Future Fund and sold to the successful broker...,” Auckland Airport said in a statement.
“The Trust expects...the Broker Sale will occur during the course of Wednesday December 4 and potentially Thursday December 5.”
A further council sell-down has been expected in recent months after it sold an interest last year.
The share price has rallied strongly in the past month, as rapid interest rate cuts by the Reserve Bank of New Zealand have created hopes of an economic recovery across the Tasman.
The airport is listed in both New Zealand and Australia, and shares closed on the ASX at $7.26 with its market value at $12bn – up from $6.65 a month ago.
Shares on the New Zealand exchange closed at $NZ8.08.
Already the council, which needs funds to pay for infrastructure, has offloaded a 7 per cent stake in Auckland Airport, worth $NZ800m, to pay down debt, and pension funds were pre-allocated shares.
Auckland International Airport raised $NZ1.4bn in September for its capital spending program and was well-supported in a deal through Jarden and Macquarie Capital.
Shares were sold at $NZ6.95, ($6.95) – a 7 per cent discount to its last close of $NZ7.48 on the NZX (they closed on the ASX at $6.95).
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