Armstrong’s Hits Pause On IPO

21 March 2022 – Armstrong’s, one of New Zealand’s largest and leading privately owned automotive groups today confirms that it will delay its plans to dual list on the main board of the New Zealand Stock Exchange and Australian Stock Exchange.

Armstrong’s CEO, Troy Kennedy said: “This is a pragmatic decision to see us come to market under more stable investment conditions. It was important to the team we get this right for investors and the business. We’re prepared to be patient and to continue executing on our growth agenda in the meantime.”

Kennedy sites market turbulence, macro-economic conditions and geopolitical events as the trifecta of reasons for the decision.

“A lot of time and effort goes into a process like this, and Rick and I have genuinely appreciated the time prospective investors have spent with us to understand Armstrong’s business model. We received strong interest from a broad range of private and institutional investors, so we want to thank them all for their time spent with us.”

“We continue to see strong month-on-month customer demand as well as strong growth in our order book, supported by the government’s Clean Car Discount programme.”

“While we have hit pause for now, we have a number of significant strategic initiatives to progress this year. We believe the market will further consolidate in the coming years and Armstrong’s intends to play a lead role during this period,” said Mr Kennedy.

“When we come back to market, we look forward to being able to engage with potential investors in person – something we had to manage virtually this time,” Kennedy added.

Founded by Rick Armstrong in 1993, Armstrong’s operates 15 strategically located dealerships and represents 16 global automotive brands across the Dunedin, Christchurch, Wellington and Auckland markets. Armstrong’s recently announced the addition of a new Mt Wellington site where it will relocate its existing Toyota Mt Wellington operations to a newly leased 2.2ha site along with head office functions that support the national group.

The group has plans in progress for additional organic growth tied to building-up and further diversifying the brand portfolio, coupled with growth via bespoke real estate development across Christchurch, Wellington and Auckland markets.

Armstrong’s has signalled that Jarden and UBS will remain Joint Lead Managers for its IPO.

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