Market drives Energy Mad to extend IPO close date

Energy Mad is offering to sell shares at $1 each and would have up to 37.7 million quoted securities once the IPO was completed. Photo / Thinkstock

Uncertainty on world financial markets has forced Energy Mad, maker of energy-efficient lightbulbs, to extend the closing date of its initial public offer to October 12.

The issue was to have closed last Friday, but the company said that it had failed to reach its $5 million minimum sought within the required time frame.

Energy Mad is offering to sell shares at $1 each and would have up to 37.7 million quoted securities once the IPO was completed.

The company has applied to list on the NZX.

Chairman Rick Ramsay said the board "recognised there is current uncertainty in the global financial markets, particularly in the equities markets".

He also suggested the IPO was being hampered by the impact of the new financial advisers regime, which he said appeared to limit the ability of brokers to make recommendations to their clients.

The Accident Compensation Corporation was a pre-IPO investor and had subscribed for a significant number of shares under the offer, Ramsay said.

The decision to extend was based on continuing discussions with a potential strategic and several institutional investors.

"We were unable to conclude these discussions before the IPO closure last Friday and the extension will give us time to potentially reach a positive conclusion," he said.

Assuming the issue goes ahead, the company's founders, Chris Mardon and Tom Mackenzie, will own 10.25 million shares each, giving them combined ownership of about half the company.

In the last financial year the company achieved revenue of $8.6 million compared with $5.9 million the previous year, and earnings before interest, tax, depreciation and amortisation of $1.4 million.

Wellington-based firm Woodward Partners is the lead manager for the issue.