DUBAI – Talabat, the MENA region’s leading food and grocery delivery platform operated by Delivery Hero (DHER.DE), has launched an initial public offering (IPO) with plans to focus on strong growth across its existing markets, according to CEO Tomaso Rodriguez. Rather than pursuing new territories like Saudi Arabia, Talabat intends to expand its offerings within its current footprint, emphasizing grocery and retail delivery services alongside its core food delivery business.
Delivery Hero will offer 15% of Talabat’s shares, or roughly 3.49 billion shares, in a Dubai listing. Industry insiders expect the offering to exceed $1 billion, making it one of the largest UAE IPOs of the year. The listing is scheduled to open for subscription from Nov. 19 to Nov. 28, with shares anticipated to commence trading around Dec. 10.
Established in Kuwait in 2004, Talabat has since expanded across the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt. As of September, the company reported a customer base exceeding six million active users across these markets, representing an addressable audience of around 71 million people.
“We believe there’s a better return for every dollar we invest in these countries,” Rodriguez told Reuters, highlighting the company’s strategy to capitalize on the potential within its current operational regions.
Talabat’s IPO aims to attract both local and international investors. While the company has yet to disclose a target valuation, Rodriguez confirmed that funds raised will be directed toward Delivery Hero for general corporate purposes. Additionally, Talabat has outlined plans for shareholder returns, proposing a $100 million dividend payout for the fourth quarter of this year, followed by dividends totaling $400 million in 2025. From 2026 onward, Talabat intends to distribute at least 90% of its net income in dividends.
With a gross merchandise value (GMV) of $6.1 billion reported for 2023, the company projects growth of around 22-23% in 2024. Emirates NBD, JP Morgan, and Morgan Stanley have been appointed as joint global coordinators and joint book-runners for the IPO.
Talabat’s listing underscores Dubai’s growing prominence as a hub for high-profile IPOs in the Middle East, with the potential to draw significant interest from regional and international investors seeking exposure to the rapidly expanding delivery sector in MENA.
