DP Poland shares tumble as CEO exits ahead of heavily discounted placing

DP Poland shares took a nosedive on Thursday after the pizza delivery outfit announced its intention to raise some cash in order to maintain its medium-term store roll-out plans and support its sales and marketing programmes.

In order to raise £5.3m, DP Poland, the master franchise holder for Domino's Pizza in that Eastern European nation, will place 88.33m ordinary shares at a price of 6p each, a 58% discount to its closing mid-market price of 14.35p on Wednesday.

DP Poland also revealed it had authorised its broker, Peel Hunt, to raise a further £500,000 by way of a broker option in order to allow existing and other investors to participate in the fundraising.

The new shares will represent 63% of the AIM-listed outfit's existing share capital.

Elsewhere, DP Poland announced that chief executive Peter Shaw, who has led the business since October 2010, shortly after it acquired the master franchise agreement, would be standing down.

Chairman Nick Donaldson and non-executive director Rob Morrish will take on Shaw's duties until such time as a permanent replacement is found.

As of 1410 GMT, DP Poland shares had tumbled 39.37% to 8.70p.