Strong Investor Demand for Middle Eastern Food Delivery Service’s Public Offering.
Delivery Hero’s food delivery platform focused on Middle Eastern cuisine, Talabat, has sold out its initial public offering (IPO) on the Dubai Financial Market within minutes of opening for subscription.
PC: Arab News
The Germany-based parent company has set the IPO offer price between Dh1.50 ($0.41) and Dh1.60 per share, offering more than 3.49 billion shares, equivalent to 15% of Talabat‘s issued share capital. At the top price of the range, Talabat’s market value would stand at around Dh37.26 billion.
The IPO subscription period is open from today and will remain open until November 27 for UAE retail investors and November 28 for professional investors. The final offer price will be determined through a book-building process and announced on November 29. Shares are slated to begin trading on DFM on December 10.
“Given that the region is experiencing favourable socioeconomic conditions with a large and growing addressable market, we are excited to welcome new shareholders to join our journey,” said Tomaso Rodriguez, Talabat’s CEO.
Cornerstone Investors and Financial Commitments
Talabat’s IPO has already secured Dh918 million commitments from cornerstone investors, including Emirates NBD’s asset management unit, Abu Dhabi Pension Fund, and Emirates International Investment Company.
Proceeds from the IPO, the company said, will be used by Delivery Hero for general corporate purposes and optimizing its capital structure. Regional Growth and Operations
Talabat operates across the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq, offering food delivery, grocery delivery, and convenience retail. In September, it had over six million active customers, 65,000 active restaurants and vendors, and 119,000 active riders.
The fourth quarter of 2024, the company will pay a dividend of at least $100 million in April 2025. The company will also disburse another $400 million over two instalments in October 2025 and April 2026 for the fiscal year 2025.
UAE’s Booming IPO Market
Talabat’s IPO reflects the UAE’s vibrant equity markets amid strong economic momentum. The country has seen a surge in market activity, with the combined capitalization of the Abu Dhabi Securities Exchange (ADX) and DFM surpassing $1 trillion.
Recent successes include Lulu Group, which raised Dh6.32 billion in what became the UAE’s largest listing this year. UAE stock markets have now become among the world’s biggest in emerging markets, overtaking financial hubs like Milan and Madrid, though still smaller than Saudi Arabia’s Tadawul.
Talabat’s listing will further consolidate the UAE’s position as a hub for high-profile IPOs, with strong investor appetite and maintained economic growth in the region supporting this notion.
