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Delivery Hero seeks to raise $1.52bn (Dhs5.6bn) from the initial public offering (IPO) of Talabat Holdings, its Middle East unit, in what is set to be one of the biggest listings in the Middle East region this year.
Talabat is offering 3.5 billion shares, equivalent to 15 per cent of the company’s total issued share capital. The indicative share price of Dhs1.50 and Dhs1.60 per share implies a market valuation of around Dhs37.3bn at the top of the range.
The delivery platform, which boasts more than six million active customers and over 119,000 active riders, is offering the shares in two tranches – to institutional investors and retail investors – between November 19 and November 28.
The final offer price will be determined at the end of the book-building process, with a trading debut on the Dubai Financial Markets (DFM) scheduled for December 10.
“Our well-defined growth strategy is focused on enhancing our product offering and increasing our market penetration, investing in our innovative fintech and loyalty programmes, scaling our advertising offerings and exploring adjacent categories, which we believe presents an exciting opportunity for investors,” said Tomaso Rodriguez, CEO of talabat.
The company’s IPO attracted three cornerstone investors: UAE Strategic Investment Fund, Abu Dhabi Pension Fund, and Emirates International Investment Company, which agreed to subscribe for shares worth as much as Dhs918m.
Talabat has hired Emirates NBD Capital, J.P. Morgan Securities and Morgan Stanley & Co International PLC as joint global coordinators and joint book-runners.
To attract investors, the delivery platform plans to pay a minimum dividend of about $100m in April relative to Q4 financial results, plus $400m in two instalments in October 2025 and April 2026. Thereafter, it expects to pay dividends twice each calendar year, targeting a net income payout of 90 per cent.
Talabat reported $6bn in gross merchandise volumes in 2023, up from just under $4bn in 2021. Free cash flow surged by 64 per cent year-on-year to $226m in the six months ended June 2024.
The company joins a wave of private company listings in the Middle East this year, with IT services firm Alpha Data considering listing in Abu Dhabi.
Bahrain’s AlAbraaj Restaurants Group seeks to raise $23.9m (BHD9m) in its IPO on the local bourse, Oman’s OQ Base Industries plans to raise $490m while Saudi Arabia’s capital markets regulator recently green-lit IPOs for cosmetics retailer Nice One and hospital operator Almoosa.
Read: Bahrain’s AlAbraaj Restaurants seeks to raise BHD9m in IPO