It got plenty of hype as the first new IPO of 2010, but Ecoya's trading on the NZX today got off to a slow start.After one trade at 11.30am this morning, shares Ecoya shares (NZX:ECO) held to its issue price of $1 for two hours before falling back 5c, alt
It got plenty of hype as the first new IPO of 2010, but Ecoya’s trading on the NZX today got off to a slow start.
After one trade at 11.30am this morning, shares Ecoya shares (NZX:ECO) held to its issue price of $1 for two hours before falling back 5c, although a third trade just after 3pm pushed it all the way back up to 99c.
There has also been no trading in Ecoya’s warrants, which were also placed on the market today (NZX: ECOWA/ECOWB)
With no other recent IPOs to compare with, it remains to be seen if the sluggish start is due to wariness over Ecoya or a more general malaise.
Almost two thirds of the company’s shares are owned by the Business Bakery, the investor vehicle from the founders of 42 Below, although these are subject to lock-up arrangements until release of Ecoya’s 31 March 2011 results.
Despite early indications of interest from former 42 Below investors, the IPO was only able to raise $7.2 million from investors, with the Business Bakery chipping in $2.9 million to top up the IPO.
When 42 Below shares began trading on the NZX in October 2003 after a $15 million initial public offering, the shares soon slumped from 50c to 31c, before climbing back to hover around the 50c mark.
In 2006, the vodka company sold up to Bacardi for 77c a share, up 35% on the trading price at that time.
Ecoya’s business is built on a platform of high-end home fragrance products, although the NZX lists it as being part of the Media & Comms sector.
