Talabat, a subsidiary of Delivery Hero, has launched its initial public offering (IPO) as it seeks to capitalize on growth opportunities in its existing Middle East markets. Delivery Hero plans to sell 15% of Talabat, equivalent to 3.49 billion shares, in a Dubai listing expected to raise over $1 billion, according to sources. If confirmed, the offering would rank among the UAE’s largest this year.
Talabat, founded in Kuwait in 2004, has expanded to markets including the United Arab Emirates, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt, boasting over six million active customers as of September. CEO Tomaso Rodriguez emphasized a strategy of focusing on existing markets rather than entering new ones, such as Saudi Arabia. “We believe that there’s a better return for every dollar we invest in these countries,” Rodriguez told Reuters, noting that the company’s current markets represent an addressable population of approximately 71 million.
The IPO subscription period will run from November 19 to 28, with trading expected to commence on or around December 10. The company is eyeing both local and international investors, although Rodriguez did not disclose specific details or the valuation target.
Proceeds from the IPO will go to Delivery Hero for “general corporate purposes,” Rodriguez said. Talabat aims to distribute a $100 million dividend in the last quarter of 2024 and plans to pay out $400 million in dividends for 2025, with a commitment to distribute at least 90% of net income in subsequent years. The company reported a gross merchandise value of $6.1 billion in 2023 and anticipates growth of 22% to 23% in 2024.
Emirates NBD, JP Morgan, and Morgan Stanley are serving as joint global coordinators and bookrunners for the listing.