NZX steps in to prop up Energy Mad IPO
Waiver granted to ensure today's listing; a "muted" debut. UPDATED: 3.50pm - It's not Wall Street, but the shares inch up.
UPDATE: 3.50pm: Late in the day, Energy Mad shares [NZX:MAD] were on $1.05 on thin trading, with just 300 shares trading hands. The shares listed at $1.
Energy Mad was granted a waiver to ensure its listing on the NZX went ahead today, a filing has revealed. The waiver holds for 18 months.
By the rules of the exchange, at least 500 members of the public holding should hold at least 25% of the IPO. At its close-off, Energy Mad had 460 subscribed, including 15 existing holders, who hold 44% of its shares.
Energy Mad extended its original IPO deadline of September 23 to October 12. Investment banker Mark Donnell, with Woodward Partners, which oversaw the IPO, told NBR he hoped the extension would see wavering Australian institutional investors come onboard.
Energy Mad had sought to raise $10 million - up to $6 million through new shares, with a further $4 million on tap from Mr Mardon and Mr Mackenzie's holdings.
But in the event, no existing shares were sold and the pair have wound up with a combined 56% of the shares on issue.
The Christchurch maker of energy efficient lightbulbs had a muted debut this morning. With zero trades by midday, its shares [NZX:MAD] remained at their listing price of $1, valuing the company at $37.75 million. An offer of $0.80 had no takers.
Under a deed of embargo, Mr Mardon and Mr Mackenzie cannot sell their shares until the first anniversary of the IPO.
Chris Keall
Wed, 19 Oct 2011
Wed, 19 Oct 2011
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NZX steps in to prop up Energy Mad IPO
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