Talabat Holding Plans IPO on Dubai Financial Market (DFM)

Photo : Dubai government media office

Talabat Holding plc, the leading on-demand food ordering, delivery, takeaway, and grocery marketplace in the MENA region, 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). This marks a significant milestone in the company's growth trajectory.

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A total of 3,493,236,093 shares will be made available in the offering, which represents 15% of the company’s total issued share capital. These shares will be sold by the company’s sole shareholder, Delivery Hero MENA Holding GmbH, a subsidiary of the German food delivery giant, Delivery Hero SE. The offering will be divided into two parts: a public offering for UAE retail investors, including eligible employees of Talabat, and an offering for professional investors outside of the United States.

The subscription period for UAE retail investors will begin on November 19, 2024, and end on November 27, 2024, while the professional investors' subscription period will close on November 28, 2024. The offer price for the shares will be determined through a book-building process during the subscription period. The shares are expected to be admitted to trading on DFM on or around December 10, 2024, subject to obtaining the necessary regulatory approvals.

As of the publication of the UAE Prospectus, Talabat’s share capital is AED 931,529,625, divided into 23,288,240,625 fully paid shares, each with a nominal value of AED 0.04. Following the offering, the company intends to distribute a minimum dividend of AED 367.25 million in April 2025, followed by an additional AED 1,469 million in two installments in 2025. Talabat's dividend policy reflects the company's strong cash flow and long-term earnings potential, with a goal to pay out 90% of its net income twice a year.

The company’s leadership expressed excitement about the IPO, with Pieter-Jan Vandepitte, Chairperson of Talabat, highlighting the significance of the flotation on DFM, marking a new phase of growth for the company. CEO Tomaso Rodriguez emphasized Talabat’s strong market presence and financial profile, with a GMV of USD 6.1 billion in 2023 and a 24% CAGR between 2021-2023. The company has been a leader in the food and grocery delivery sector, with over six million active customers across its eight regional markets.

The IPO will be managed by a group of financial institutions, including Emirates NBD Capital PSC, J.P. Morgan Securities PLC, and Morgan Stanley & Co International PLC as joint global coordinators, with additional joint bookrunners and receiving banks appointed for the offering. The completion of the offering and the subsequent listing on DFM is anticipated in December 2024. This IPO represents a major opportunity for investors to be part of Talabat’s continuing success as it enters this new chapter in its growth story.