New Zealand car dealership network Armstrong’s has announced that it’s considering a dual listing on the main board of the New Zealand Stock Exchange (NZX) and the Australian Stock Exchange (ASX) in 2022.
“Armstrong’s intends to decide on a final capital structure, including a possible dual NZX/ASX listing, in 2022. Jarden and UBS have been engaged to support this process. Further updates will be shared with staff and external stakeholders in the coming months,” said the group in a statement.
The news comes amid Armstrong’s nationwide expansion. The chain opened a new facility on Ti Rakau Drive catering to Peugeot, Nissan, and Citroen. It’s also completed its renovations at its three-storey ‘Supersite’ Great South Road.
It also recently confirmed it would be the official distributor for the much anticipated Ineos Grenadier; a back-to-basics off-roader alternative to the Land Rover Defender, which lands in New Zealand next year.
As it stands, Armstrong’s has 15 dealerships on its roster across Auckland, Wellington, Dunedin, and Christchurch, selling 16 different brands of vehicles. In its statement the firm boasts that it sold 12,000 new vehicles in the last calendar year.
“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,” says Armstrong’s CEO Troy Kennedy.
The firm notes that customers have responded well to online and contactless methods of car sales during New Zealand’s various lockdown phases. It’s also noted a strong response from plug-in vehicle buyers following the government’s introduction of the Clean Car Discount.
“Armstrong’s maintains a cautiously optimistic trading outlook and its centralised group operating structure positions the Group well to move quickly to take advantage of acquisition and development opportunities in the current environment,” the firm said.
“We have an enviable brand portfolio built on long-term trusted relationships with global automotive brands. 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 added.
“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,” adds Mr Kennedy.
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