Strong Market Performance Following Region’s Largest Tech IPO
PC: WION
Talabat Holding, the Middle East’s leading food delivery and online grocery operator, got off to a flying start on the Dubai Financial Market after the largest initial public offering in the tech sector this year. The IPO raised almost $2bn, which indicates strong demand from investors.
Talabat Holding operates across the UAE, Kuwait, Oman, Qatar, Egypt, Jordan, Iraq, and Bahrain. Over the last few years, it has been aggressively expanding. Its major acquisitions include the meal delivery business of Zomato in India for the UAE in 2019 and InstaShop, an online grocery platform, in 2020. Through these strategic moves, Talabat has further consolidated its regional dominance under the umbrella of its parent company, Delivery Hero.
On its debut in the market, Talabat’s share prices surged 7.5% to close at 1.72 dirhams ($0.47) against an IPO price of 1.6 dirhams. This surge pushed the company valuation to around 40 billion dirhams ($10.9 billion). Its IPO elicited high demand, and the company could raise its offering from 15% of the unit to 20% to raise about 7.5 billion dirhams ($2 billion).
It is the largest tech offering in the Gulf region this year, according to Bloomberg. It also reflects the larger trend wherein companies across the Persian Gulf seek to diversify their economies and to deepen their capital markets.
Record IPO Activity Seen in Gulf Region
Gulf-based companies have collectively raised close to $12 billion through IPOs in 2024. This wave of public offerings reflects ongoing efforts by regional governments to attract private-sector enterprises from a variety of industries, including retail, healthcare, and finance.
The growing population in key urban centers like Dubai has significantly boosted businesses focused on catering to consumers. This demographic expansion, combined with a steady influx of expatriates and an increase in residents’ disposable income, has created a fertile environment for the growth of delivery and e-commerce services. These factors have provided a solid foundation for companies such as Talabat to thrive and expand their operations.
Talabat’s recent successful IPO and strong market debut highlight the immense potential of the Middle East’s tech-driven and consumer-focused sectors. Investors are increasingly recognizing the region as a promising hub of economic opportunity, further solidifying its position as a key player in the global market.
