• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Dominos [ASX:DMP] halted on ASX for German JV capital raising launch

Like 0

By Mahlia Stewart, Thursday, 01 December 2022

US multinational pizza chain Domino's Pizza Enterprises [ASX:DMP] entered a market halt earlier today at its own request in preparation for a fully underwritten institutional placement of $150 million.

US multinational pizza chain Domino’s Pizza Enterprises [ASX:DMP] entered a market halt earlier today at its own request in preparation for a fully underwritten institutional placement of $150 million.

The fast food chain is also to include a non-underwritten share purchase plan (SPP) to raise a further $15 million.

Altogether the Pizza enterprise has begun an equity capital raising for a total of $165 million.

DMP’s stock price, prior to the trading halt, was trading at a 47% devaluation over the last 12 months. DMP has been trading down 32% in its industry over that time.

ASX:DMP dominos pizza stock chart

Source: tradingview.com

Dominos’ Capital Equity Raising is launched

The popular pizza chain entered a trading halt in preparation for an equity raising of $165 million.

Said equity raise is to be achieved through both a fully underwritten institutional placement, totalling $150 million, and another $15 million as a non-underwritten share purchase plan (SPP).

The purpose being to raise funds to purchase all shares held by DPG (its UK and European subsidiary) for the company’s German joint venture.

Dominos said further funds from its SPP will be put to paying off debts.

The franchise reassured investors that capital-raising shares will be of equal rank to existing issued company shares.

As at 30 June, the company’s net debt was chalked up to $635 million, post-Malaysia, Singapore, and Cambodia acquisitions.

The company expects the purchase and payment options to take place in the first half of the calendar year 2023 and reiterated certain mechanisms for option pricing have been implemented under the joint venture agreement.

As for pricing, the company expects to work through the share prices through a bookbuild today, subject to an underwritten floor price of $65.05 for each new share, a discount of 2.0% to the company’s closing price yesterday.

The SPP will be available for eligible shareholders to apply for new shares at a lower end of the final price achieved under institutional placement and at a 2% discount to the closing price of the SPP offer period (22 December).

As it stands, eligible shareholders will have the option to apply for up to $30,000 worth of new shares.

Morgan Stanley has been selected as the lead manager and underwriter for the placement. Aperture Capital Partners is acting as the company’s corporate adviser, and Thomson Geer is the legal adviser.

Group CEO of Dominos, Don Meij, expressed his thoughts with the following statement:

‘We are excited about increasing our ownership in Domino’s Pizza Germany, which has been an objective of ours since entering the market. Germany offers strong long-term growth prospects for our business.’

Dominos’ AGM guidance is echoed

The company reflected on its trading outlook for the remainder of the 2023 financial year and remains in agreeance with the guidance provided to markets at the company’s AGM on 2 November.

At the AGM, Dominos revealed a 4.6% increase in net sales in FY22, an increase of 4.4% in online sales, and yet the company’s underlying EBIT was down by 10.5%.

For its FY23 trading update, sales were down 1.8%, and same-store sales were also down by 1%.

Dominos stated its business is tracking ‘to plan’ with Malaysian, Singaporean, and Cambodian markets also performing within the company’s expectations.

Although Dominos did warn of continuing inflationary headwinds continuing into the 2023 calendar year, this was unsurprisingly relating to energy prices and labour costs, which will undoubtedly play a large role in upcoming performance — especially given an increased presence in Europe.

Top Five Retirement-Worthy Stocks

With inflation in Australia hitting its highest in twenty years, a comfy retirement seems a far-fetched dream.

Inflation can whittle down savings and make the ‘nest egg’ concept seem laughable.

Are there any stocks that can face volatile financial cycles such as these?

Our senior editor at The Daily Reckoning, Greg Canavan, says yes, certain dividend stocks.

Greg has found five dividend stocks that could outperform in today’s hostile market — suggesting a steady income to retire on.

Learn more here.

 

Regards,

Mahlia Stewart,

For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Mahlia Stewart

Mahlia’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • Critical Metal Stocks: Following the Iron Ore Playbook
    By James Cooper

    How does inconceivable capex find its way into new mining projects? Answer: Higher commodity prices. James Cooper compares the iron ore boom from the early 2000s to what may lie ahead for critical minerals.

  • Copper traders: gettin’ jiggy with it
    By Callum Newman

    Copper has now broken into an all time high after threatening to do so for some time. There’s no reason to think it’s going to go down, either, if the market views Trump as serious. The race is on to buy up what you can before the tariff goes into effect.

  • Australia ain’t the USA…and that’s great!
    By Callum Newman

    The outlook for Australia and the ASX are very different to the US and US shares. Here’s why…

Primary Sidebar

Latest Articles

  • Critical Metal Stocks: Following the Iron Ore Playbook
  • Copper traders: gettin’ jiggy with it
  • Australia ain’t the USA…and that’s great!
  • The biggest infrastructure spending boom in history just kicked off
  • You Read it Here First: Great Asset Rotation Underway

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988