Talabat, owned by Delivery Hero (DHER.DE), has announced its initial public offering (IPO) as it aims to strengthen growth within its current Middle East markets. The company will focus on encouraging food delivery customers to explore its retail and grocery services, according to CEO Tomaso Rodriguez.
Delivery Hero plans to sell 15% of Talabat—around 3.49 billion shares—in its Dubai listing, with sources estimating the offering could exceed $1 billion, making it one of the UAE’s largest IPOs this year.
Since its founding in 2004 in Kuwait, Talabat has expanded to the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt, with over six million active customers as of September. Rather than pursuing entry into Saudi Arabia, Rodriguez emphasized a focus on existing markets, noting, “We believe there’s a better return for every dollar we invest here,” and highlighted an addressable market population of around 71 million.
The IPO subscription will run from Nov. 19 to Nov. 28, with shares expected to begin trading around Dec. 10. Talabat aims to attract both local and international investors, though further valuation details were not disclosed.
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Proceeds from the IPO will support Delivery Hero’s general corporate needs, with Talabat planning a dividend of approximately $100 million for the last quarter of this year and $400 million in 2025. Long-term, Talabat aims to distribute at least 90% of its net income as dividends. The company reported a gross merchandise value of $6.1 billion in 2022, with a projected 22-23% growth for 2024.
Emirates NBD, JP Morgan, and Morgan Stanley have been appointed as joint global coordinators and book-runners for the IPO.
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