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DP to float in London
Posted on Thursday, 15 June 2017 13:45
DP Eurasia, the exclusive master franchisee of the Domino's Pizza brand in Turkey, Russia, Azerbaijan and Georgia, is hoping to fire up investors with listing implying a market capitalisation of between GBP 291.00 million and GBP 331.00 million.
The fast food business has set a price range of 200.00 pence to 230.00 pence apiece on the initial public offering, comprising a sale of both new and existing shares on the London Stock Exchange, which should complete by 3rd July.
Domino's is one of the most successful fast food brands worldwide and a global leader of home delivery with nearly USD 10.90 billion sales in 2016 and 13,811 stores in 85 countries.
As such, DP is the fifth largest master franchisee within the global system, and the biggest pizza delivery company in Turkey and third in Russia, in terms of number of stores of 488 and 76 locations, respectively.
It had 571 takeaway/eat-in facilities, as of 31st March 2017, as has rapidly expanded by an average of 68 system locations every year following its acquisition in 2010 by Turkish Private Equity Fund and Aslan Saranga.
However, growth plans do not end there as it has plans to open a further 70 new sites this year – 40 in Russia and 30 across Turkey, Azerbaijan and Georgia – and between 70 to 90 additional stores annually over the medium term.
SP’s current target is high single digit percentage like-for-like growth in Turkey and low- to mid-teens percentage in Russia.
Proceeds amounting to roughly GBP 21.00 million will support working capital, in particular the planned rollout of corporate locations.
System sales rose from TRY 470.30 million (GBP 105.03 million) in the financial year ended 31st December 2014 to TRY 647.40 million in FY 2016 and revenues from TRY 319.20 million to TRY 451.10 million over the same timeframe.
DP said adjusted earnings before interest, tax, depreciation and amortisation increased by a 73.0 per cent compound annual growth rate over the period (FY 2014: TRY 25 million; FY 2016: TRY 75.00 million).
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