Talabat IPO to raise up to €1.5 billion ahead of Dubai stock market debut

German food delivery giant Delivery Hero announced that the IPO of its Middle East subsidiary, Talabat, is set to raise approximately €1.42 billion ($1.4 billion to $1.5 billion) in gross proceeds ahead of its listing on the Dubai Financial Market (DFM) this December.

The offer, comprising over 3.49 billion shares — equivalent to a 15% stake — will run from November 19 to November 28, 2024, with shares priced between AED 1.50 and AED 1.60 ($0.41 to $0.44) each. The final offer price will be announced on November 29, with trading scheduled to commence on December 10. The offering size remains subject to change.

Talabat CEO Tomaso Rodriguez described the IPO as a pivotal moment for the company:

"All at Talabat are excited to be embarking on this new phase of growth."

Rodriguez highlighted the favorable socioeconomic dynamics in the region, including rapid urbanization, a young demographic, and increasing online penetration, which he believes will drive future growth, customer engagement, and platform spending.

Operating across eight MENA countries, including the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq, Talabat boasts six million active customers. The company bundles Delivery Hero’s operations in the Middle East and North Africa.

Cornerstone investors, including Emirates NBD AM SPC (on behalf of UAE Strategic Investment Fund), Abu Dhabi Pension Fund, and Emirates International Investment Company, have committed approximately AED 918 million to the IPO. Delivery Hero plans to use the proceeds to enhance its capital structure.

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

Leading the offering are Emirates NBD Capital, J.P. Morgan Securities, and Morgan Stanley & Co. International as joint global coordinators. Joint book runners include:

• Abu Dhabi Commercial Bank
• Barclays Bank
• EFG-Hermes UAE Limited
• First Abu Dhabi Bank
• Goldman Sachs Bank Europe
• ING Bank
• UniCredit Bank

This listing underscores Talabat’s commitment to scaling its operations and capitalizing on the region’s vibrant growth opportunities.