42 Below team plot IPO for lotion firm

Geoff Ross with candles from fragrance firm Ecoya. Photo / Supplied

42 Below founders Geoff Ross, Grant Baker and Stephen Sinclair are testing the water for a $10 million IPO of their luxury scented candle and body lotion business Ecoya.

The trio, whose Business Bakery investment company owns just under 80 per cent of Ecoya, has engaged Capital Markets Development Taskforce chairman Rob Cameron's investment banking firm to advise them on capital raising plans.

Ecoya is considering an offer of shares to the New Zealand public in March or April to raise about $10 million with some capacity for oversubscriptions.

Ecoya executive chairman Ross said the company intended using the proceeds to fund entry into the United States market and sales growth in Australasia and China.

The company last year opened a flagship store for its scented candles and body products in Shanghai. A store is also planned for California.

"We also have plans to develop additional products using natural bases and the finest fragrance and essential oils, and some funding would be applied to general corporate purposes," Ross said.

Should it proceed the offer would be made to to clients of NZX firms, the public, former 42 Below shareholders and associates of Ecoya's executive directors Ross, Baker, Sinclair and Craig Schweighoffer. It would be partially underwritten by the Business Bakery.

Ross, Baker and Sinclair sold vodka company 42 Below in 2006 to Bacardi for $138 million. Since then, the Business Bakery has made a number of investments including Australia-based Ecoya.