LSE IPO to value Domino’s Pizza operator in Turkey, Russia at up to €379mn

By bne IntelliNews June 16, 2017

DP Eurasia, master franchisee of Domino’s Pizza in Turkey, Russia, Azerbaijan and Georgia, announced on June 15 that the price range for its planned initial public offering (IPO) on the London Stock Exchange was at 200 pence to 230 pence per share. That implied “a market capitalisation of between £291mn (€334mn) and £331mn (€379mn)”.

“The mid-point of the price range equates to an expected offer size of £203mn and an expected free float of more than 65%, including the exercise of the over-allotment option,” DP Eurasia said in a statement.

The listing is expected to take place on June 28. Morgan Stanley is acting as global co-ordinator and joint bookrunner and Citigroup Global Markets Limited is acting as joint bookrunner.

The offer will comprise the sale of part of the shares held by Fides Food Systems Coöperatief U.A., an entity owned by Turkish Private Equity Fund II L.P., and Vision Lovemark Coöperatief U.A., an entity owned by the company's CEO Aslan Saranga, plus an issue of new shares to raise gross proceeds of £21mn.

The proceeds will be used for general corporate purposes and working capital needs, in particular relating to the planned roll out of corporate stores in Russia, DP Eurasia said.

DP Eurasia is the fifth largest master franchisee of Domino's Pizza Inc.

DP Eurasia, acquired by Turkish private equity firm Turven and Aslan Saranga in 2010, operates 571 stores in Turkey, Russia, Azerbaijan and Georgia, with the highest concentration in Turkey.

The company plans to open 70 new outlets this year - around 40 in Russia and approximately 30 across Turkey, Azerbaijan and Georgia - and around 70 to 90 new stores annually over the medium term.

DP Eurasia’s sales increased by 38% from TRY470mn (€120mn) in 2014 to TRY 647mn in 2016 while its EBITDA rose to TRY 75mn in 2016 from TRY 25 million in 2014.

“This is an exciting time as we continue to innovate and invest in technology to maximise delivery experience to drive growth in our markets,” CEO Aslan Saranga said. “We look forward to our future as a listed company, which combined with our well-established business model, will accelerate our growth plans in our highly attractive, underpenetrated markets."  

On May 12, ambitions to make the London Stock Exchange initial public offering of Turkey’s Global Ports Holding one of the biggest London listings of the year hit a setback when the float priced at the bottom end of the range.

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