Overview of IPO and Key Stakeholders
Talabat Holding, a leading food delivery platform in the Middle East and a subsidiary of Delivery Hero (DHER.DE), is to raise its capital in a very much-awaited initial public offering through listing on the Dubai Financial Market. The company intends to sell about 3.49 billion shares, which represents a 15 percent stake. This was announced on Monday. The earlier report from Reuters said this will be one of the biggest listings in the United Arab Emirates so far this year, raising more than $1 billion.
PC: Arab News
Delivery Hero, which is based in Berlin and bought the majority stake in Talabat in 2015, will retain its majority following the IPO.
IPO Timeline and Investment Opportunities
It is set for November 19 to 27, with the option available for professional investors on November 28. Talabat will begin trading at DFM around December 10 after the listing and will be the category leader in e-commerce and food delivery brought into DFM.
The company has mandated Emirates NBD Capital PSC, J.P. Morgan Securities PLC, and Morgan Stanley & Co International PLC as joint global coordinators and book-runners in the management of the firm’s IPO. This will be managed by these institutions for its IPO process worldwide. The parties are looking for this coordinated effort to make the process of a public listing hassle-free and smooth for Talabat.
Talabat’s Expansion and Popular Market Share
Founded in 2004 in Kuwait, Talabat has spread its wings in many markets in the Middle East. Today, it serves more than six million active customers by the end of July in the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt. Talabat stands as one of the largest food ordering businesses in the region, counting with a great presence in different markets.
An IPO by Talabat would show how the company has been growing regionally on an extensive scale and owns a relatively well-established customer base, making it one of the strongest players in the Middle Eastern digital economy. It is going to draw big attention from a local and international investor base keen on this reasonably fast-growing food delivery market in the region. The food delivery industry still stands strong in the Middle East. Therefore, the offering of Talabat’s IPO will be a very attractive proposition for investors looking to participate in this growth-based business.
