Domino’s Pizza in Poland has announced it is raising £3.58m through a through a share placing and an open offer to fund its store rollout programme.
The company, which is on track to operate 12 sites in the country by the end of this year, said it had conditionally raised £2.75m through the placing of new ordinary shares at 60p apiece.
It also plans to raise up to £1m through an open offer to qualifying shareholders of one share for every 11.86714 held. The group said this represents a discount of approximately 9.8% to the closing middle market price on 22 December.
It said that proceeds and existing cash resources would be used to fund its 2012 roll out programme as it looks to reach 20 stores and enable it to sub-franchise.
The chain said that sales in the 10 stores open in the week ending 18 December stood at PLN104,000 (£19,525). Sales at its first store had steadily grown since opening in March with weekly sales over PLN17,500 for the week ending 18 December.
Peter Shaw, chief executive, said: “Our first year has been successful. We have fulfilled our promise to open 12 stores and sales have grown steadily as the stores have opened. Our most recent research demonstrates that, as anticipated, customers are buying our pizzas for their quality and speed of delivery, the opportunity that was identified prior to launch.
“Our first target for 2012 is to reach 20 owned stores which will enable us to gain critical mass and will allow us to begin to sub-franchise, an important part of our model going forward.
“We are delighted with the support for our placing. We have structured the open offer in an optimal way with a discount to the current market price and eligibility for EIS tax relief, allowing individual investors to shelter income tax and potentially avoid any CGT. Assuming eligibility for the available tax breaks and retention for three years, shareholders and those who purchase in the market before 13 January can effectively buy into the company through the open offer at 42p.”
