Around 10,000 people have bought into solar company Lodestone Energy – which starts trading on the New Zealand sharemarket today after the country’s first major public share sale in about five years.

The renewable energy company raised $75 million in its initial public offering (IPO), when a company sells shares to the public for the first time. Its shares will start trading on the NZX Main Board at midday under the code LOD.

Almost half the money came from everyday investors buying shares for the first time. The rest came from large investment firms, known as institutional investors, and from people who already owned part of the company.

Shares were sold at $2.25 each. At that price, the whole company is worth about $440 million.

Lodestone’s managing director and founder Gary Holden said the support had been “pretty special”.

“It shows people believe in what we’re trying to achieve, including our plan to build a solar farm in every community. We’ve had strong support from people who’ve been with us for years, and it’s fantastic to welcome so many new shareholders on board,” he said.

Around 10,000 investors have bought into renewable energy company Lodestone Energy, which begins trading on the NZX today.

Around 10,000 investors have bought into renewable energy company Lodestone Energy, which begins trading on the NZX today. (Source: istock.com)

The company, set up in 2019, runs five solar farms around the country from Northland to Canterbury. In a year, they are expected to produce about as much electricity as more than 33,000 average New Zealand homes use. A sixth farm is being built in Hawke’s Bay.

Most solar developers sell their power into the wholesale market, where electricity is traded in bulk. Lodestone also sells directly to customers, including well-known businesses such as The Warehouse Group, Inghams and Briscoes. It has started selling power to homes and small businesses in Hawke’s Bay and plans to expand.

The money raised will go towards building more farms and finding more customers. The company wants to have 16 to 18 solar farms running by its 2032 financial year, opening two to three new farms a year.

“New Zealand is going to need a lot more electricity, and we see a real opportunity for solar to help meet that demand,” Holden said.

“Six years on, we’ve built a business that generates renewable electricity and sells it directly to customers. Now we’re ready for the next stage of Lodestone’s growth.”

All of the company’s existing shareholders kept their shares through the float. Their shares are held under escrow, which means they cannot sell them for a set period after listing.