On its first day of trading on Wall Street, Domino's Pizza stock disappointed investors, falling 4% from the $14 price of the private stock offering that closed Monday. Domino's raised $339 million from the IPO, although it had initially estimated that the IPO price would be set at $15 to $17 per share. On Tuesday, the stock closed at $13.50. According to the company filing with the SEC, the IPO funds will be used to, among other things, pay down a portion of the company's long-term debt which is now in excess of $900 million. The chain's founder, Tom Monaghan (who bought his brother out of the business in 1965 for a VW Beetle), owns 6.3% of the outstanding shares.
Posted by franchiselawblog at July 14, 2004 11:38 AM