Automotive company applies to list on NZX

The company behind 2 Cheap Cars has applied for a direct listing on the NZX main board and is set to debut on February 25.

NZ Automotive Investments (NZAI) has confirmed it is seeking a direct listing, which means the company will only list existing shares and not create new ones.

More than 45 million shares will be made available at a reference price of $1.30, giving the company a market capitalisation of about $59m, reports Radio NZ.

NZAI was founded in 2011 and owns two subsidiaries – the used-car dealership chain 2 Cheap Cars and the vehicle finance business NZ Motor Finance (NZMF).

Karl Smith, pictured, chairman, says moving on to the sharemarket is “an important milestone” and will support its plans for expansion.

“The direct listing is really going to provide us with the opportunity to unlock capital to grow our vehicle finance division,” he adds.

Eugene Williams and David Sena, founders of 2 Cheap Cars, will remain cornerstone shareholders and stay in their roles within the business and on the company's board.