Telepizza flops on first day of trading

Shares in Spanish-owned international fast-food franchise Telepizza plunged 19.35% on the company’s first day of trading on the Madrid bourse after a nine-year absence from the markets. The debut, one of the worst in Spanish history, saw the pizza delivery company’s price fall from €7.75 to €6.25 on Wednesday. The company said ahead of the launch that it intended to pay a dividend within two years.

Wednesday’s launch was in stark contrast to its first stock market appearance in 1996, when its share price rose by almost 35% on the first day of trading.

Founded in 1987 and with a network of more than 1,300 outlets in 15 countries, Telepizza describes itself as the largest pizza delivery business in the world outside of the United States

“The last few weeks have been intense,” said CEO Pablo Juantegui – who will receive a €1.75 million bonus as part of the launch – after trading began on Wednesday morning. “Demand has been more than 2.5 times the size of the offer,” he added, noting that half of requests to purchase shares had come from the United States, with 37% from the United Kingdom. Spanish investors have shown little interest in the launch.

Founded in 1987 and with a network of more than 1,300 outlets in 15 countries, Telepizza describes itself as the largest pizza delivery business in the world outside of the United States, but has seen income fall in recent years. Revenue was little changed last year at €328.9 million, down from €336.8 million in 2013.

Juantegui says the company intends to continue expanding in South America, and will also focus on boosting online orders. At present, around a third of orders are made via its websites.

English version by Nick Lyne.