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Lodestone Energy, which builds and operates utility-scale solar farms and sells the electricity directly to businesses and households, has listed on the NZX Main Board after an initial public offering that raised $75 million and brought in about 10,000 new shareholders. The company’s shares began trading at midday today under the ticker LOD.
The offer was priced at $2.25 a share, implying a market capitalisation of $440 million and an enterprise value of $513.6 million on listing. Almost half the capital raised came from new retail investors, with the remainder from institutional investors and existing shareholders. Lodestone describes it as the first significant IPO in New Zealand in about five years.
Lodestone was established in 2019 and now has five operating solar farms, with a sixth under construction in Hawke’s Bay. Its expected annual generation meets the electricity needs of more than 33,000 average New Zealand homes.
The company’s point of difference is that it does not simply develop farms and sell the output into the wholesale market. It also sells electricity directly to customers, including The Warehouse Group, Inghams and Briscoes. It has begun selling to households and small businesses in Hawke’s Bay and plans to widen that retail offering.
Managing Director and Founder Gary Holden said the listing was a moment to celebrate. “Having around 10,000 investors back Lodestone is pretty special. It shows people believe in what we’re trying to achieve, including our plan to build a solar farm in every community. We’ve had strong support from people who’ve been with us for years, and it’s fantastic to welcome so many new shareholders on board,” he said.
The $75 million raised will fund the company’s development pipeline and expand its electricity customer base. Lodestone is targeting 16 to 18 operating solar farms by FY32, which means bringing two to three new farms online each year.
All existing shareholders retained their shares through the IPO and remain invested alongside the new investors, with their holdings subject to escrow arrangements following listing.
Holden said the task now is delivery. “Six years on, we’ve built a business that generates renewable electricity and sells it directly to customers. Now we’re ready for the next stage of Lodestone’s growth: building more solar farms and selling electricity to more New Zealand homes and businesses,” he said.
For business electricity users, the listing signals a better-funded competitor in the retail market. Lodestone’s pitch rests on selling solar generation directly to commercial customers rather than through the wholesale market, and the IPO proceeds are earmarked partly for reaching more of them.
The company frames the opportunity around demand. “New Zealand is going to need a lot more electricity, and we see a real opportunity for solar to help meet that demand,” Holden said. “We’ve spent six years learning how to build solar farms more efficiently and connect the electricity we generate with customers. We have the people, the experience and a strong pipeline of projects.”
He said the focus was on execution: “Now it’s about putting that experience to work, building more farms, reaching more customers and delivering on what we’ve set out to do.”
The listing puts a construction timetable in front of public shareholders. Lodestone’s stated plan of two to three new farms a year to reach 16 to 18 by FY32 is now the measure by which the market will judge it, and the escrow on existing holdings keeps the original investors alongside the new ones through that period.
The company said the capital will support both more generation and a wider customer base, the two halves of a model that depends on each farm finding buyers for its output.
Source: NZX announcements
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