Lodestone Energy lists on NZX after USD $75 million IPO

Lodestone Energy has listed on the NZX Main Board after a US$75 million initial public offering that brought in about 10,000 new shareholders.

The shares were offered at $2.25 each, giving the New Zealand solar generator and retailer a post-IPO market capitalisation of $440 million and an enterprise value of $513.6 million on listing. The deal was described as the first significant IPO in New Zealand in about five years.

Almost half the money raised came from new retail investors, with the rest provided by institutional investors and existing shareholders. Existing shareholders retained their holdings after the offer and remain invested, with those shares subject to escrow arrangements following the listing.

The debut marks a new stage for a business that both develops solar farms and sells electricity directly to end customers, setting Lodestone apart from operators that generate power and sell only into the wholesale market.

Its customer base includes large commercial names such as The Warehouse Group, Inghams and Briscoes. The company has also started supplying households and small businesses in Hawke's Bay as it expands its retail presence.

Growth plan

Lodestone currently has five operating solar farms across New Zealand. Those sites are expected to generate enough electricity each year to match the needs of more than 33,000 average New Zealand homes.

A sixth solar farm is under construction in Hawke's Bay. The IPO proceeds are intended to support a wider development pipeline and expand the company's electricity customer base.

The business is targeting between 16 and 18 operating solar farms by FY32. It plans to bring two to three new farms into operation each year as it scales up generation and retail supply.

The strategy comes as electricity demand is expected to rise as more parts of the economy electrify. Lodestone was established in 2019 and has built a model that combines ownership of utility-scale solar assets with direct electricity sales to commercial, business and residential users.

Gary Holden, managing director and founder of Lodestone Energy, said the listing was an important moment for the company and its investors.

"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.

"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," Holden said.

The company enters the public market with a larger shareholder base than many recent local listings, reflecting support from both small investors and institutions. The offer also provides fresh capital at a time when renewable generation projects require substantial upfront spending on land, equipment and grid connections.

Lodestone's expansion plan will test investor appetite for a listed pure-play solar business in New Zealand. Its model depends not only on adding generation assets, but also on increasing the number of customers buying electricity directly from the company.

Holden said management is now focused on execution.

"We're proud of what we've built, and we're excited about what's ahead. New Zealand is going to need a lot more electricity, and we see a real opportunity for solar to help meet that demand.

"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.

"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," Holden said.