Talabat’s IPO: A game-changer for delivery hero’s Middle Eastern operations

Talabat, the Middle Eastern subsidiary of the German food delivery giant Delivery Hero, is set to raise between €1.42 billion (approximately $1.4 billion to $1.5 billion) through its upcoming IPO ahead of its debut on the Dubai Financial Market (DFM) scheduled for this December.

The initial public offering (IPO), which encompasses over 3.49 billion shares representing a 15% stake in the company, is expected to take place from November 19 to November 28, 2024. Share prices will range from AED 1.50 to AED 1.60 ($0.41 to $0.44) each, with the final price to be disclosed on November 29, and trading anticipated to start on December 10. The total offering size may be adjusted.

Talabat CEO Tomaso Rodriguez called the IPO a transformative step for the company, expressing excitement about entering a new growth phase. He emphasized the region’s favourable socioeconomic conditions, including rapid urbanization, a youthful population, and growing online engagement, as drivers of future expansion, customer interaction, and spending on the platform.

Operating in eight MENA countries—UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq—Talabat serves six million active customers and consolidates Delivery Hero’s operations in the Middle East and North Africa.

Cornerstone investors, such as Emirates NBD AM SPC (representing the UAE Strategic Investment Fund), Abu Dhabi Pension Fund, and Emirates International Investment Company, have pledged around AED 918 million towards the IPO. Delivery Hero intends to utilize the funds to strengthen its capital structure.

Talabat’s IPO is poised to become one of the largest in the UAE this year, following Lulu Retail’s IPO, which raised $1.7 billion in Abu Dhabi.

The offering is being led by Emirates NBD Capital, J.P. Morgan Securities, and Morgan Stanley & Co. International, serving as joint global coordinators. Other joint book runners include: Abu Dhabi Commercial Bank, Barclays Bank, EFG-Hermes UAE Limited, First Abu Dhabi Bank, Goldman Sachs Bank Europe, ING Bank and UniCredit Bank.