IPO | Dazhong Shares begins its offering today, with an expected listing on March 28

Futu Information reported on March 16 that$DPC DASH (01405.HK)$The company announced that it will conduct its IPO from March 16 to March 21. The company plans to issue 12,799,000 shares, of which 1,280,000 shares are for public offering and approximately 11,519,000 shares for international offering. The issue price is between HKD 46-55 per share, with a minimum lot size of 100 shares, and it is expected to be listed on March 28.

Doss Group is the exclusive master franchisee of Domino's Pizza in mainland China, the Hong Kong Special Administrative Region, and the Macao Special Administrative Region. As of the latest practicable date, it operates 604 directly-run stores across 17 cities in mainland China.

Since 2018, Doss Group has been focused on expanding its store network, making it the fastest-growing company among the top five pizza brands in China, ranking as the third-largest pizza company in China by revenue in 2022 (according to the Frost & Sullivan report). During the recorded period, its number of stores grew by 119.4%, reaching 588 stores as of December 31, 2022.

In terms of global retail sales for 2022, its global franchisor, Domino’s Pizza, Inc., is the largest pizza company worldwide, with over 19,800 stores across more than 90 markets globally as of January 1, 2023.

After 62 years of development, Domino's has created a distinctive business model focusing on offering high-quality, handmade pizzas at competitive prices. Through technological innovation, it provides convenient ordering and efficient delivery services.

Financially, during the period from 2020 to 2022, the company's total revenue was approximately RMB 1.1 billion, RMB 1.6 billion, and RMB 2 billion, respectively, representing year-over-year growth of 45.9% from 2020 to 2021 and 25.4% from 2021 to 2022.

In terms of the industry, going forward, increasing penetration of pizza restaurants in first-tier and lower-tier cities, the growth of delivery services, and the rising popularity of Western cuisine (including pizza) will contribute to the continued growth of China’s pizza market. Prospectus data shows that from 2016 to 2019, the revenue scale of China’s pizza market grew from RMB 22.8 billion to RMB 33.5 billion, with a compound annual growth rate (CAGR) of 13.7%. From 2022 to 2027, China’s pizza market size is expected to grow at a CAGR of 15.5%, reaching RMB 77.1 billion by 2027.

Regarding the use of proceeds, the company plans to allocate approximately HKD 515 million in net proceeds for the following purposes: around 90% will be used to expand the store network over the next two years, while the remaining 10% will be used for general corporate purposes.

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