Talabat Plans IPO On Dubai Financial Market By Mid-December

Talabat, the Middle Eastern food delivery platform owned by Germany's Delivery Hero, plans to launch an initial public offering (IPO) on the Dubai Financial Market (DFM) by mid-December 2024. The IPO will offer 15 percent of Talabat’s shares, marking a significant step in the company’s expansion across the Middle East and North Africa. However, the final size of the offering may be adjusted based on market conditions and regulatory approvals. 

The listing is subject to necessary approvals from the Securities and Commodities Authority of the UAE. A local prospectus for the IPO, approved by the authority on November 7, 2024, was published on Talabat’s website on November 11, 2024. In addition, private placements to institutional investors will be based on an international offering memorandum, which will also be made available on Talabat’s website when the book-building period begins. 

Talabat will announce the offer price range and the opening of subscriptions on November 19, 2024. The retail subscription period will close on November 27, followed by the closure of institutional subscriptions on November 28. Retail investors can expect allocation details on December 6, when SMS confirmations will be sent, and any refunds to retail subscribers will commence. The company’s listing on DFM is expected to take place on December 10, 2024. 

Following the IPO, Delivery Hero will retain the majority interest in Talabat. The company will be subject to a 180-day lock-up period post-listing and will maintain half of the seats on Talabat’s board of directors. The proceeds from the IPO will be used for general corporate purposes, including optimizing Delivery Hero’s capital structure. 

Talabat also plans to pay a minimum dividend of approximately US$100 million in April 2025, based on the fourth quarter (Q4) 2024 financial results. Additional dividends of around $400 million are scheduled for October 2025 and April 2026, based on 2025 results. Going forward, Talabat intends to distribute dividends twice annually, targeting a payout of 90 percent of its net income. 

In a statement, Talabat CEO Tomaso Rodriguez said, "The past 20 years have seen Talabat achieve extraordinary growth, developing a unique service for millions of customers and becoming the partner of choice for thousands of restaurants and grocery businesses across our eight markets. As we look forward to this new chapter today, I am confident that the expertise of our people and the power of our technology platform will enable us to capitalize on favorable socioeconomic conditions in our markets." 

"This includes accelerating urbanization, a growing young population, and rising online penetration, all of which will drive growth, customer engagement and platform spending," he added. "All at Talabat are excited to be embarking on this new phase of growth, as we continue to empower communities and proudly deliver to the region that delivers."

Founded in Kuwait in 2004, Talabat now operates across multiple Middle Eastern markets, including the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt, serving over six million active customers. The company has expanded its offerings beyond food delivery to include grocery, health, and beauty products. 

In September, Delivery Hero engaged Emirates NBD, Morgan Stanley, and JPMorgan Chase to assist with Talabat’s IPO.