Energy Mad to offer shares on NZ exchange
Christchurch-based light bulb maker Energy Mad has announced an initial public share offer to raise up to $10 million and aims to list on the stock exchange in early October.
The offer values the company, which makes energy-efficient light bulbs, at $37m.
Up to 10 million new and existing shares would be made available to new investors at an offer price of $1.
The offer opens on August 29 with the company to market it among New Zealand brokerages with that process to close on September 23.
Quotation and trading of shares is expected to commence on the NZSX on Monday, October 3.
Energy Mad co-founder Chris Mardon said roadshows to promote the offer would begin in Dunedin at the end of the month and travel through the main centres to Auckland. Money raised in the IPO would be used to add staff in Australia, and also expand in the US and Europe.
"We've talked to three major brokers so far," he said, "all of whom have been very supportive."
Energy Mad was founded in 2004 with the aim of selling enough energy-saving light bulbs to power Christchurch for a year.
Line Trust South Canterbury (a part owner of Alpine Energy), partnered with Energy Mad in late 2004, and the first ecobulb project was launched, with strong sales into South Canterbury homes.
Mardon and his co-founder, Tom MacKenzie, had around two-thirds ownership of the company. There were also a number of smaller shareholders, the largest of which was ACC.
Since 2004 the company, which manufactured its bulbs in China, had grown rapidly and its ecobulb products were now in use in 900,000 New Zealand homes. Each ecobulb used up to 80 per cent less electricity, and lasts up to 15 times longer than an equivalent output incandescent light bulb, the company said in its prospectus issued yesterday.
In the last 18 months more than 500,000 Australian homes had installed ecobulbs, and the company was now selling into Ireland, Germany and the United States. This international expansion saw the company start to "burn quite a lot of cash" to subsidise that growth, Mardon said.
The company's growth was recognised in 2007 when it won the Deloitte Fast 50 as the fastest growing company in New Zealand.
This year the company, with 14 staff (half based in Christchurch), had revenue of $8.6m and reported net profit of $0.8m from continuing operations.
Mardon said Energy Mad did not require many more staff or overheads to achieve significant further production. In the next two years he predicted another three or four New Zealand staff.
Net profit was projected to grow to $4m in the March 31, 2013 financial year and revenue to $21.3m. "In the three years from FY2010 to FY2013 Energy Mad expects to grow its revenues at a compound average growth rate of 53 per cent per annum."
Energy Mad's float will be only the second on the NZX this year after financial institution Heartland NZ listed in January.
NZX chief executive Mark Weldon welcomed the pending arrival on the market.
"They're a company that's (run) on remarkable entrepreneurial spirit and, like their name, a lot of energy."