Talabat Holding, Delivery Hero’s Middle East subsidiary, announced on Monday its plan to sell a 15 per cent stake through an initial public offering (IPO) on the Dubai Financial Market (DFM), marking one of the biggest listings in the region.
Delivery Hero MENA will offer 3.5B shares in Talabat at AED0.04 each, representing 15 per cent of its total share capital.
Talabat, with over six million active users and more than 119,000 riders, will open the share offering to institutional and retail investors from 19 to 28 November.
Founded in Kuwait in 2004, Talabat now serves customers across the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt, with a network of over 65,000 partners by September 2024.
“We began in Kuwait in 2004, and Talabat has grown into a regional, tech-driven leader in food and retail delivery,” said CEO Tomaso Rodriguez, highlighting their base of six million monthly customers and 65,000 business partners.
The company’s gross merchandise volume rose to $6B in 2023, up from nearly $4B in 2021, with a 64 per cent year-on-year increase in free cash flow to $226M for the first half of 2024.
To attract investors, Talabat plans a minimum dividend of $100M in April based on Q4 results, plus $400M split into instalments in October 2025 and April 2026. From then, semi-annual payouts of 90 per cent of net income are planned.
Talabat’s IPO adds to a wave of Middle Eastern listings, with firms like Alpha Data, AlAbraaj Restaurants, and Saudi-based Nice One and Almoosa also preparing for public offerings.
