Lodestone Energy weighs IPO for NZ solar expansion

Lodestone Energy is considering an initial public offering and is seeking preliminary indications of interest from investors. If it proceeds, it could become the first NZX-listed company focused on utility-scale solar generation.

No decision has been made on whether the float will go ahead. At this stage, Lodestone is asking potential investors to register interest as it gauges support for a possible share sale.

Founded in 2019, the New Zealand solar developer builds and operates utility-scale solar farms across the country. It also sells the electricity it generates directly to consumers, giving it a presence in both generation and retail.

Its business model spans solar farm development, construction management, operations and maintenance, electricity generation and retail, allowing it to manage more of the electricity value chain as it expands.

Lodestone has commissioned five solar farms with a combined operating capacity of 169 MWdc. Those sites are expected to produce 266 GWh of first-year P50 electricity generation a year, enough to power more than 33,000 homes annually.

Growth plans

The proposed IPO is intended to back the next phase of expansion. Any capital raised would be used for additional solar farm construction, customer growth and general corporate purposes.

The plan is being framed around rising electricity demand in New Zealand and Lodestone's ambition to expand its footprint nationwide. It aims to build a network of solar farms closer to the communities they serve.

"Lodestone Energy was founded with a simple ambition: to bring utility-scale solar to New Zealand and build a network of solar farms generating renewable electricity closer to the communities that use it. We have made significant progress toward that ambition and are now considering whether an IPO could support the next stage of Lodestone Energy's growth. No decision has been made on whether an IPO will proceed. At this stage, we are simply inviting people to register their interest so we can better understand the potential level of investor support," said Jack Matthews, Chair, Lodestone Energy.

Managing Director Gary Holden outlined a broader commercial goal as the company seeks to grow both its generating assets and retail customer base.

"Our vision is to build a solar farm in every community and develop Lodestone Energy into a vertically integrated gentailer capable of serving customers across New Zealand. We have built the foundations of the business and our focus now is on continuing to build solar farms, adding customers and steadily growing the amount of renewable electricity we supply. If the IPO proceeds, the capital raised is intended to support the construction of additional solar farms, expansion of our customer base and general corporate purposes. It would also provide investors with an opportunity to participate in Lodestone Energy's ambition to build a nationwide solar generation and retail business," said Gary Holden, Managing Director, Lodestone Energy.

Market position

If Lodestone pursues a listing, it would enter public markets as a specialist solar-focused electricity business at a time when investment in renewable generation is drawing increasing attention. Its focus on utility-scale solar sets it apart from larger listed energy groups with broader generation portfolios.

Its operating base remains modest relative to incumbent electricity generators, but its five commissioned solar farms provide a tangible asset base as it weighs a market debut. The combination of project development, asset operation and direct electricity sales means prospective investors would be assessing both infrastructure growth and customer acquisition.

The indication-of-interest process does not commit investors to buy shares or confirm that an offer will proceed. Instead, it allows Lodestone to test early market appetite before deciding whether to launch a formal IPO.

For New Zealand's energy sector, the proposal highlights continued efforts by newer entrants to fund renewable generation buildout through public markets rather than relying solely on private capital. It also points to the growing role utility-scale solar is expected to play alongside hydro, wind and geothermal generation in meeting future electricity demand.

Registrations of interest will help Lodestone assess the potential level of investor support.