Lodestone Energy to become first major NZX listing in almost five years

Solar power company Lodestone Energy expects to list on the NZX on October 22, making it the first substantial listing on the exchange in almost five years.

Expressions of interest in a possible initial public offer (IPO) and NZX listing for Lodestone closed on Friday.

Lodestone, in a notice to the NZX, said the reference price of its shares would be $2.25 a share.

Up to 206.66 million shares would list, which would give the company a potential market capitalisation of $465 million.

The company is seeking to raise between $75m and 100m via the IPO.

No shareholders are selling through the offer, and capital raised will support the construction of additional solar farms, the expansion of Lodestone Energy’s customer base and general corporate purposes, the company said.

The IPO opens on September 29 and closes on October 14.

The last major listing of any size was property company Winton in December 2021.

Lodestone was founded in 2019 to bring utility-scale solar to the New Zealand electricity market.

“Lodestone’s strategy is based on the vision of a solar farm in every community, integrated with New Zealand’s largely renewable energy electricity grid,” the company said in its notice to the NZX.

Lodestone generates 100% renewable electricity from its operational solar farms across the North and South Islands.

“Lodestone is a vertically integrated renewable electricity generator that develops, constructs and operates its solar farms and sells electricity directly to its customers through its innovative ‘virtual rooftop’ contracting model,” it said.

The company currently serves commercial and industrial customers and has begun selling electricity to mass-market retail customers, extending its proposition to households and small businesses in the communities where it operates, it said.

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