Talabat set to deliver 15% of its stake to the public on DFM

The Berlin-based company announced plans to list Talabat on the Dubai Financial Market (DFM) with an initial public offering (IPO) of 15 per cent of the total issued shares of Talabat Holding during the fourth quarter of the year. A total of 3,493,236,093 shares, each with a nominal value of AED0.04, will be made available in the IPO.

Talabat IPO set for December

Proceeds from the IPO, which depends on the number and price of Talabat shares to be sold, will be used for general corporate purposes and to further optimise its capital structure.

The Management Board of Delivery Hero resolved to list Talabat in mid-December 2024, and may amend the size of the offering subject to required approvals of the Securities and Commodities Authority (SCA) of the UAE.

The SCA has approved the local prospectus of the public offering and listing last week and it will be published on the company’s website today (November 11). The subscription period will open on 19 November and end on 27 November 2024 for UAE Retail Investors and on 28 November 2024 for Professional Investors.

Admission of the shares to trading on DFM is expected to take place around 10 December.

Delivery Hero will retain the majority interest in Talabat, and will be subject to a lock-up of 180 days following listing. The company will have half of the number of directors on the board.

Pieter-Jan Vandepitte, Chairperson of Talabat, commented: “Announcing Talabat’s intention to float a 15 per cent stake on DFM is a defining moment for Talabat and for Delivery Hero.

“Since Delivery Hero’s acquisition of Talabat in 2015, it has become a major MENA tech success story, growing into the leading on-demand food ordering, delivery, takeaway and groceries and convenience retail marketplace and creating amazing experiences and value for partners and customers across the region. With its unmatched scale, strong MENA heritage and multi-category leadership, Talabat is strategically positioned to seize the opportunity in its markets.”

Delivery Hero recently announced its results for Q3 2024, with the MENA segment a standout performer. The region achieved Gross Merchandising Value (GMV) growth of 30 per cent YoY, driven by a 25 per cent YoY increase in order volumes and attractive affordability initiatives, including vendor-funded deals.

Tomaso Rodriguez, Chief Executive Officer of Talabat, added: “Having begun our story in 2004 out of Kuwait, Talabat has since transformed into a home-grown technology-driven food, groceries and retail delivery champion with deep local roots. Today, we are the leading MENA partner of choice for over 65,000 restaurant and grocery businesses, satisfying the everyday needs of over six million monthly active customers, across our eight regional markets.

“Our deep familiarity with a region that is experiencing strong economic and demographic growth has resulted in a robust financial profile with GMV of $6.1 billion in 2023, a 24 per cent CAGR between 2021-2023, and adjusted free cash flow of over $300 million in 2023.”

The company plans to pay a minimum dividend of approximately $100 million in April 2025 and approximately $400 million in two installments in October 2025 and April 2026. Thereafter, the company intends to pay dividends twice each calendar year, with a target net income payout of 90 per cent.

Delivery Hero is the world’s leading local delivery platform, operating its service in around 70 countries across Asia, Europe, Latin America, the Middle East and Africa. The company is listed on the Frankfurt Stock Exchange since 2017.