One of the country's biggest car dealers, Armstrong's, is considering listing on the New Zealand and Australian stock exchanges.
Founder of Armstrong's - Rick Armstrong, and chief executive Troy Kennedy. Photo: Supplied
The Auckland-based company is reviewing its capital structure and looking for outside investment to fund growth plans.
"The business is at a scale with the right systems and leadership team in place to put our foot down on emerging opportunities as New Zealand's vehicle fleet starts to go through significant structural change in the race to put more Reduced Emission Vehicles (REVs) on the road," chief executive Troy Kennedy said.
Last year it sold about 12,000 cars with turnover of $448 million, with expectations it will go through $500m this financial year. In addition to car sales, it also has finance, insurance and servicing operations, and overall has more than 500 staff.
It has 15 dealerships in Auckland, Wellington, Christchurch and Dunedin, and its brands include Alfa Romeo, Audi, Hyundai, Jaguar, Mercedes, and Toyota.
"We are looking at growth through two lenses - organic-based growth tied to building-up and further diversifying the brand portfolio, coupled with growth via bespoke real estate development plans across Christchurch, Wellington and Auckland markets," Kennedy said.
He said the company was looking at buying properties, some currently the site of dealerships and others bought in anticipation, which are currently owned by interests associated with its founder Rick Armstrong.
"With nearly three decades of experience under our belts and a founder-led culture anchored to our business partners and customers, now is an opportune time to explore a dual listing in order to access external capital and accelerate our growth ambitions for the next 30 years," Kennedy said.
A decision on whether to list is expected next year.
