Ecoya to list on Monday after IPO closes slightly ahead of $10m target
Geoff Ross' venture away from flavoured vodka and towards scented candles will prove its worth on Monday when shares in Ecoya go live.
Ecoya announced yesterday that its initial public offering (IPO) closed slightly ahead of target at $10.1 million - it was aiming for $10 million.
Applications by New Zealand institutions, international investors, the Australia and New Zealand public and former 42Below shareholders amount to around $7.2 million, which includes an additional $100,000 investment from interests associated with independent director, and Air New Zealand chief executive, Rob Fyfe.
About $2.9 million of shares have been subscribed to by The Bakery Business, owned by Ross and fellow Ecoya directors Grant Baker and Stephen Sinclair.
Ecoya manufactures eco-friendly scented candles made from soy and sustainable palm wax. The company also has a range of lotions, bath and body care and home fragrances.
The products are aimed at the luxury end of the beauty market.
Ecoya executive chairman and 42Below founder Geoff Ross said the IPO could have been oversubscribed by $3 million but the market was still cautious.
Ecoya is the first IPO and listing since Kathmandu's six months ago.
Ross told the Herald, before the IPO was launched, that the global body and bath market was worth about $31.5 billion a year. The US home fragrance market was valued at about US$7.2 billion in 2007.
Trading in shares and warrants is expected to begin on Monday. Shares will open at $1 each.
Ross said he was not sure what to expect when the stockmarket opened on Monday and from here on it was "over to the market".
The Bakery indicated in March it would underwrite the offer.
Upon listing there will be 43.1 million Ecoya shares on issue and The Bakery's shareholding will be about 65 per cent.
"It is exciting times as we enter significant global markets and we look forward to executing Ecoya's international growth plan with the new funding in place," Ross said.
"An IPO is a pretty big process. It's very important when you're a growth company. We're on target, there still is a little bit of cautiousness but we are happy with the result and keen to get on with it."
Ross said life as a listed company would start for Ecoya on Monday and the directors, many of whom were associated with 42Below, were "thrilled to be at it again".
The capital raised will be used to expand into the US, the UK and China.
A pool of 1.5 million shares was available for public investors, a pool of 6 million shares was available for NZX firms and a selection of institutional investors.
A pool of 2.5 million shares was made available for Ecoya's independent directors and private investors.
