Talabat Holding PLC, a leading online platform for food delivery, groceries, and essential retail services in the Middle East and North Africa, has announced its intention to proceed with an Initial Public Offering (IPO) and list its ordinary shares for trading on the Dubai Financial Market (DFM).
In a statement, Talabat revealed plans to offer approximately 3.49 billion ordinary shares, with a nominal value of AED 0.04 per share, representing 15% of the company’s issued share capital.
Giles Thorne, an analyst at Jefferies, described the IPO as “a highly positive catalyst for Delivery Hero’s shares,” citing “very low execution risks” and a significant reduction in balance sheet debt.
Thorne added that Talabat is “one of the best, if not the best, delivery platforms globally,” estimating the company’s valuation between €11.5 billion and €13.5 billion.
Talabat faces competition from regional players such as Saudi Arabia’s Jahez and Careem, owned by Uber Technologies.
Niklas Östberg, CEO of Delivery Hero, declined to comment on the IPO during an interview with Reuters on Thursday, when the company disclosed its Q3 earnings.
The company’s Gross Merchandise Value (GMV), which measures the total value of goods sold, increased by 30% in the Middle East and North Africa, its fastest-growing region. This area accounted for over a quarter of the company’s GMV during the third quarter.
