Lodestone clears $75m IPO threshold for first major NZX listing in five years

Lodestone Energy says it has successfully received “firm commitments” for shares in its initial public offering.

The solar power firm did not offer details about the level of subscription to the offer, which was pitched at $2.25 a share, aimed at raising $75 million to $100m.

More details on the level of subscription would be released later, but the offer cleared the minimum $75m threshold, the company said.

Up to 206.66 million shares would debut, giving the company a potential market capitalisation of $465m.

The offer closed yesterday and the stock is due to list on October 22.

“The initial public offer [IPO] represents an important development for New Zealand’s capital markets, being the country’s first significant public offering in approximately five years,” the company said.

It also marked the next stage in Lodestone’s evolution from an emerging solar developer into an established renewable electricity generation and retail business.

Managing director Gary Holden said the successful offer reflected the strength of the business and the opportunities ahead.

Lodestone’s listing will be the first on the NZX of any size in five years.

“This is an important milestone for Lodestone and for New Zealand’s capital markets,” Holden said.

“Bringing a significant new company to the NZX after a prolonged period of limited IPO activity is a positive development for the market.

“Lodestone enters this next phase with an established track record, operating generation assets, a differentiated business model and a clear pathway for continued expansion.

“The company’s ability to combine renewable generation with direct customer relationships provides an important competitive advantage and creates opportunities to deliver long-term value for both customers and shareholders.

“New Zealand’s increasing electricity requirements provide a compelling opportunity for further renewable generation investment.

“Lodestone is well positioned to contribute to meeting that demand through the continued development of its solar generation portfolio supported by the expansion of its electricity retail business.

“The successful IPO provides a strong foundation for the company’s next stage of growth, and we look forward to welcoming our new shareholders next week.”

As it stands, investors associated with investment bank Jarden own most of the shares.

Holden has 6.15%.

Guy Haddleton, a New Zealand entrepreneur and billionaire, owns 5.7%.

The Warehouse founder Sir Stephen Tindall has 5.134%.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.