NZ Automotive Investments (NZAI) has today announced it has applied to list on the NZX.
The Company will be going public via a direct listing on the NZX main board, so it will not be issuing any new securities in conjunction with the listing.
NZAI operates throughout New Zealand via two subsidiaries: automotive retail (2 Cheap Cars) and vehicle finance (NZ Motor Finance).
Established in 2011 by founders Eugene Williams and David Sena, NZAI’s automotive retail company has grown to now operate 12 car dealerships around New Zealand, selling (on average) 11,000 cars per year over the past three years - around 8 per cent of all used car imports into New Zealand.
Board Chair Karl Smith says NZAI is pursuing a direct listing in order to support long-term growth, in particular access to capital in the future for expansion of its vehicle finance company.
The Company’s existing position in the used car market provides a base from which to grow its vehicle finance division in line with NZAI’s plans.
“Our strategy is to leverage the retail business to build a diversified automotive services group by growing NZAI’s retail finance business,” says Smith.
Approximately a third of 2 Cheap Cars customers require vehicle finance at point of sale. By offering its own car finance to customers buying their vehicles from 2 Cheap Cars, NZMF can originate loans with effectively no marketing or acquisition costs.
NZAI has appointed an experienced Board of independent directors, and vehicle finance expert David Page as CEO, to provide strong governance and management to lead the company through its expansion and drive its growth strategy.
“It’s a testament to Eugene and David to see how much has been achieved in growing the company to this point. With a proven track record, strong governance and a clear strategy now in place, NZAI is now positioned to enter the next phase of growth,” says Smith.
“A direct listing on the NZX is an important milestone and will provide NZAI access to capital in the future for expansion, in particular to grow the vehicle finance business.”
As owner-operators, Eugene Williams and David Sena have managed the business with a focus on shareholder value creation and efficient capital allocation, objectives which will continue to guide NZAI’s strategy.
Williams and Sena will both remain cornerstone shareholders following the direct listing and will also remain in their roles within the business and on the NZAI Board.
“A direct listing on the NZX is a significant milestone in NZAI’s journey as we work to become one of New Zealand’s leading used automotive groups,” says Williams.
The Company expects to debut on the NZX Main Board on 25 February 2021.