News

Domino's Pizza Australia files IPO prospectus

April 12, 2005

BRISBANE, Australia — It's official: Domino's Pizza Australia will go public on May 16.

According to its prospectus, filed April 13 with the Australia Stock Exchange, the 333-unit company will issue 60 million shares at a price of $2.20 for a market capitalization of AUS $132 million (U.S. $102 million). The actual offer to the public will be a shade more than 34 million shares (56.8 percent of all shares) in order to raise $75 million (U.S. $58 million). Existing shareholders will retain the remaining 43 percent.

The sale's purpose is to fuel the chain's expansion, pay down debt, provide a return to existing shareholders and allow eligible employees and franchisees to invest in the chain.

"In our view, Domino's Pizza presents an attractive growth profile supported by expansion into new geographic markets, including Victoria and New Zealand and in-filling in existing territories, including Sydney," said DPA managing director Don Meij. "We also anticipate growth in sales from existing stores, potential for new store and menu formats and continued growth in market share of chains over independents."

At the close of its fiscal year in June, DPA anticipates system-wide sales of AUS $300 million (U.S. $232 million) from its Australia and New Zealand operations.

The company's 9,700 employees service 101 corporate stores, 232 franchised stores and its Brisbane headquarters.