Middle East’s Largest IPO of the Year: Delivery Hero’s Talabat Unit
A Billion-Dollar Deal in the Making
German food delivery giant Delivery Hero SE is set to make waves in the Middle East with the planned listing of its Talabat unit in Dubai. This initial public offering (IPO) could be one of the region’s largest of the year, with potential proceeds of around $1 billion.
Retaining Control, Raising Capital
Delivery Hero will sell a 15% stake in Talabat, while retaining a majority interest in the company. The deal’s size may be adjusted subject to approvals from the United Arab Emirates’ Securities and Commodities Authority. Talabat’s valuation could reach as high as $12 billion, including debt, making it a “crown jewel” for Delivery Hero.
Investors Take Note
Investors can submit orders from November 19 to 27, with shares expected to start trading in Dubai on or around December 10. Talabat has also announced plans to pay a minimum dividend of $100 million in April, followed by two installments of $400 million in October 2025 and April 2026.
A Flurry of New Share Sales in the Middle East
Talabat’s IPO comes amid a surge in new share sales in the region. Oman’s state-owned energy company recently raised a record $2 billion by listing its exploration and production unit, while private sector companies like Lulu Retail Holdings Plc and Alpha Data are also eyeing listings.
Growth and Competition
Talabat reported $6 billion in gross merchandise volumes in 2023, up from $4 billion in 2021. Free cash flow increased by 64% year-on-year to $226 million in the six months ended June. However, the entry of competitors could impact Talabat’s market share and valuation, according to analysts.
Cementing its Position
Delivery Hero has been expanding its presence in the Middle East through strategic acquisitions, including Indian firm Zomato’s food delivery business in the UAE and online grocery platform InstaShop. The Talabat brand operates in several countries, including Bahrain, Egypt, Oman, Qatar, Kuwait, Iraq, and Jordan.
Leading Banks Appointed
Emirates NBD Capital PSC, JPMorgan Securities, and Morgan Stanley have been appointed as joint global coordinators and joint bookrunners on the offering, alongside several other leading banks.
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