2 Cheap founder flogs $3.9m of shares

A founder of NZ Automotive Investments (NZAI), which owns 2 Cheap Cars, has sold $3.9 million of his shares following a retail bookbuild.

Eugene Williams offloaded 4.233 million shares – about 9.3 per cent of shares on issue – on September 17.

The final sale was about $3.94m, more than $1m below its target, with the shares subscribed at an offer price of 93c per share. 

Williams, pictured, remains a substantial shareholder with 36 per cent of the company following the sale.

NZAI went into a trading halt on September 17 to allow the bookbuild process to take place. The halt was lifted by the end of the day.

“The founder’s successful sell down is aligned to and facilitates the business strategy of increasing liquidity and broader engagement in the stock,” says the company in a statement.

The company joined the main board of the NZX in February 2021 with 45.5m shares at a reference price $1.30 a share, giving it a market capitalisation of about $59m.

Its share price has struggled since and fell as low as $1 in May.

NZAI warned this month that its half-year profit will drop because of the Covid-19 lockdown in Auckland.

It expects to announce its half-year results at the end of November.