Western Australian motoring giant Automotive Holdings Group is examining plans for a $50 million stock market float.
Western Australian motoring giant Automotive Holdings Group is examining plans for a $50 million stock market float.
If successful, such a float would be the second listing of a major family-based WA company in the past 18 months, following the success of Multiplex’s IPO in December 2003.
AHG is the state’s biggest retail automotive group, operating dealerships with household names such as Big Rock Toyota, Southside Mitsubishi, City Motors, North City Holden and Chellingworth Chrysler and Jeep among its 20 brand names.
It is estimated the group turns over more than $1 billion, second only to Len Buckeridge’s BGC when it comes to private companies in WA.
The business was started in 1952 when Syd Wheatley established City Motors with the support of General Motors and the involvement of his two sons, Vern and Peter.
Vern Wheatley remained intimately involved with the company until last year, when he stepped down as chairman of the firm to take a non-executive directorship. His business partner, Bob Branchi, stood down as managing director at the same time to take over the chairmanship.
Bronte Howson took operational control of the company.
There have also been other significant changes in the business during the past year, including the separation of the property business into a stand-alone unit run by Mr Wheatley’s daughter, Michelle, and long-term executive Phil Oates.
The property business has about $90 million in assets and remains the main developer of new AHG dealership sites – with four in the pipeline at the moment.
There has also been the rebranding of dealerships to carry the AHG tag, a move that has escalated with television advertising strongly focused on the AHG name.
While the recent change in stock market conditions may influence the ultimate decision to float, an IPO appears to have drawn closer with Australian Securities and Investments Commission records showing the private company has sought a change to public company status in documents signed off by CFO Hamish Williams.
WA Business News was unable to obtain comment from the company but sources suggested the IPO was likely to be handled by national stockbroking firm Bell Potter Securities.
