Talabat shares drop 6.9% amid heavy trading

Shares of Talabat Holding, a leading food delivery company, fell by 6.875% on December 10, 2024, closing at AED 1.49. This decline comes after Talabat’s strong debut on the Dubai Financial Market (DFM), where it raised AED 7.5 billion ($2.04 billion) in the Gulf’s largest IPO of the year.

Despite the decline, trading activity remained robust, with over 737 million shares changing hands across 18,519 trades. The trading volume reached an impressive AED 1.18 billion, reflecting sustained market interest. Talabat’s stock fluctuated during the day, reaching a high of AED 1.72 and a low of AED 1.43.

The stock’s initial surge of nearly 7% on its debut trading day reflected strong investor enthusiasm, but subsequent volatility suggests market recalibration. Talabat, operating under the ticker symbol “TALABAT”, still commands a market capitalization of AED 34.7 billion, underscoring its significant presence in the tech sector.

Talabat operates in eight regional markets, including the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq. The platform serves over six million active customers, connects with 65,000 restaurants and vendors, and employs a delivery fleet of approximately 119,000 riders.

The company, in which Frankfurt-listed Delivery Hero retains a majority stake, has committed to paying dividends totaling $500 million over the next two years. These include a minimum $100 million payout in April 2025 for Q4 2024 and an additional $400 million split into two installments in October 2025 and April 2026.

Talabat’s IPO is part of a broader wave of regional companies tapping public markets amid strong economic momentum. According to PwC’s Q3 2024 IPO Watch, the value of IPO proceeds in the GCC surged to $904 million in the third quarter, compared to $523 million during the same period last year.

The decline in Talabat’s stock comes after a highly anticipated IPO season, which also saw Lulu Group raising AED 6.32 billion in November.