Spain’s Telepizza plans to raise €550 million from share sale

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MADRID / Reuters

Fast-food company Telepizza has announced it planned to list on Spain’s stock market on April 27, looking to raise 550 million euros ($621 million) from the share sale, to become one of the first Spanish companies to seek a listing this year.
Specialised engineering company Dominion, a unit of car parts company CIE Automotive, is planning to list on the same day, after a dearth of new entrants so far this year.
Telepizza’s private equity owner Permira, which bought the company 10 years ago, aims to take advantage of Spain’s economic recovery to exit its investment, with the Spanish retail sector having recorded rising sales for nearly 20 straight months.
Telepizza, which serves pizzas and burgers in 15 countries from Poland to Colombia, said in its prospectus it planned to price the shares at between 7 euros and 9.5 euros per share.
The deal will comprise an initial offering of new shares worth 118.5 million euros and a secondary offering of existing shares by Permira of 61.6 million shares worth 431.5 million euros, proceeds of which would be used to reduce debt.
After Telepizza’s listing, Foodco, which is 75 percent owned by Permira, will hold 12.8 percent of the company. If an over-allotment option is exercised, Foodco’s stake will fall to 10 percent. There will be a total of 98.98 million shares in Telepizza after the IPO giving a prospective market capitalisation of 940 million euros at the highest indicated price of 9.5 euros.
The firm booked revenue of 492 million euros and core earnings of 58 million euros in 2015. Its debt stood at 390 million euros as of end 2015, according to the prospectus.

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