NEW YORK (CNN/Money) -
Domino's Inc., the world's top pizza delivery company, could file for an initial public offering before the end of the summer, people familiar with the offering told CNN/Money.
Bain Capital, which owns 93 percent of Domino's, may file for the IPO with the Securities and Exchange Commission as soon as this week. However, the offering could still be pulled due to poor market conditions, sources said.
It was unknown how much Bain would offer in the Domino's IPO or which underwriters would be used on the transaction. Ann Arbor, Mich.-based Domino's operates a network of nearly 7,100 owned and franchised stores. Last year, the company sold 400 million pizzas in the United States.
Domino's competes against Pizza Hut, the world's largest pizza restaurant chain (Domino's is No. 2) which is owned by Yum! Brands Inc. (YUM: Research, Estimates) Other rivals include Papa John's International Inc. (PZZA: Research, Estimates), and Little Caesar Enterprises Inc, a unit of Ilitch Holdings Inc.
The Domino's IPO will come at a relatively slow time for new issues, with the number of deals down 34 percent this summer. Since June 1, 30 IPOs have priced, raising $8.25 billion. Last year, 46 transactions hit the IPO market by Aug. 12, raising $15.8 billion, according to data from Dealogic, a New York-based investment banking research firm.
The last restaurant-related IPO came from Red Robin Gourmet Burgers Inc., a restaurant chain, which went public in July. Shares of Red Robin (RRGB: Research, Estimates) traded near their $12 IPO price Monday.
The Domino's IPO also caps a busy time for Bain, a Boston-based private equity firm. Bain, along with Texas Pacific Group and Goldman Sachs Capital Partners, agreed to buy Burger King from Diageo PLC for $2.3 billion cash in July.
Spokesmen for Domino's and Bain declined comment.
|