18 Feb 2021

Vehicle finance company to debut on local exchange

11:22 am on 18 February 2021

The New Zealand Stock Exchange will get its second new name for the year on its main board next week.

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Photo: 123RF

The vehicle finance company NZ Automotive Investments (NZAI) will debut on the local exchange but it will not be raising any money - for now.

The company, which was founded in 2011, owns two subsidiaries; the automotive retailer, 2 Cheap Cars, and the vehicle finance business NZ Motor Finance.

It has 12 dealerships across the country and said it had sold about 11,000 cars per year over the past three years.

Over 45 million shares will be made available at a reference price of $1.30, giving the company a market capitalisation of about $59 million.

NZAI chair Karl Smith said the company was listing because it wanted to access cash in the future and grow its vehicle finance business.

The company said about a third of its customers who purchased vehicles from 2 Cheap Cars required finance and by offering it through NZ Motor Finance the company could offer credit without the marketing costs.

"Our strategy is to leverage the retail business to build a diversified automotive services group by growing NZAI's retail finance business," Smith said.

Up until now, the company had been owned and operated by its co-founders Eugene Williams and David Sena.

The company had appointed David Page as its chief executive.