Shares in scented candle maker Ecoya (NZX: ECO) are expected to start trading on the NZX today after its IPO offer closed, fully subscribed, on Friday. Underwriter The Business Bakery ­ the investment vehicle of the team behind Vodka maker 42 Below &s
Shares in scented candle maker Ecoya (NZX: ECO) are expected to start trading on the NZX today after its IPO offer closed, fully subscribed, on Friday.
Underwriter The Business Bakery the investment vehicle of the team behind Vodka maker 42 Below put up $2.9 million or 29%, which helped Ecoya just exceed the $10 million target in the offer.
The other $7.2 million was raised by institutional investors, the Australian and New Zealand public and former 42 Below shareholders. It includes an additional $100,000 investment from interests associated with independent director and Air New Zealand chief executive Rob Fyfe.
Ecoya shares, sold at $1 each, and warrants are expected to start trading today under the ticker ECO the year’s first IPO on the NZX market.
The candle maker will list with 43.1 million Ecoya shares on issue and The Bakery¹s shareholding will be around 65 per cent.
Subscribers for Ecoya shares also received two warrants for every four shares, exercisable in two equal tranches: one before December 15 2011 and the other before June 15 2013. These warrants will trade separately under the tickers ECOWA and ECOWB.
The Bakery indicated in Ecoya¹s March prospectus it would partially
underwrite the offer.
All The Bakery¹s shares (including those subscribed for in the IPO) are subject to lock-up arrangements until release of Ecoya¹s March 31, 2011 results on the terms set out in the restricted Security Deed dated March 25 2010.
Ecoya executive chairman Geoff Ross says the additional investment by The Bakery confirms the company’s confidence in Ecoya¹s international growth plans.
“It¹s exciting times as we enter significant global markets and we look
forward to executing Ecoya¹s international growth plan with the new funding in place.”
Allotment notices were mailed to share and warrant holders on Friday.
Ecoya has forecast 2011 earnings of $8 million in its prospectus, up from $3.9 million in the year to March 31.
