Poland-based pizza stores operator DP Poland (LON: DPP) is raising £4.8m through placing and subscriptions at 8p a share. This month the share price has by around one-third to 8.85p.
Luxembourg-based family office investment company M&M Holdings is subscribing £2.6m for 31.875 million shares.
DP Poland raised £3m at 8p a share last November. DP Poland already has shareholder permission to issue the shares so no general meeting will be required.
The cash will be used to finance the growth of the chain in Poland. This could be through opening new stores of via bolt-on acquisitions. The store roll-out in Poland and the recently acquired Croatia franchise will be accelerated by at least four stores. Marketing spending will also be increased. The Dominium by Domino’s brand is being discontinued.
Newly opened stores in Poland are trading strongly. Prices have been increased to offset higher costs, which are also being held back by greater buying power. Tourist numbers are still below previous levels. A third store was opened in Croatia in June.
