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Ecoya's $10.1 million IPO gets over the line with help from underwrite by the Bakery

Friday 30th April 2010

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Ecoya’s underwriter the Bakery, whose owners were behind vodka marketing success 42 Below, have chipped in for about 29% of the scented candle maker’s shares in its initial public offering, helping the company reach its $10.1 million target.

The shares, sold at $1 apiece, are set to begin trading on the NZX on Monday under the ticker ECO. Subscribers for shares also got two warrants for every four shares and the warrants, exercisable in two tranches by December 2011 and June 2013, will also begin trading on Monday under the tickers ECOWA and ECOWB.

The IPO, the first on the NZX for about six months, raised $7.2 million of the $10 million sought from institutions, retail investors and former 42 Below shareholders. Interests associated with independent director Rob Fyfe, the chief executive of Air New Zealand, picked up an additional $100,000 of stock, which is why the total raised reached $10.1 million.

The Bakery, the investment vehicle of 42 below founders Geoff Ross, Grant Baker and Stephen Sinclair, will own about 65% of the 43.1 million shares on issue. Those shares are subject to a lock-up until Eocya has posted its March 2011 results.

Ecoya’s 2011 earnings are forecast at $8 million, according to the prospectus, up from $3.9 million in the year ended March 31. Former 42 Below members with daily roles at Ecoya include executive director Grant Baker, CEO Craig Schweighoffer who runs the manufacturing site in Sydney and CFO Stephen Sinclair. Independent directors for the producers of “affordable luxury” are Australian fashion designer Collette Dinnigan, American west coast film and television producer Rich Frank and Air New Zealand CEO Fyfe.


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