Talabat, the UAE’s leading on-demand food and Q-commerce app, revealed on Monday that its parent company, Delivery Hero Mena Holding, will offer over 3.493 billion ordinary shares in an initial public offering (IPO).
The shares will have a nominal value of Dh0.04 per share, and the company plans to sell a 15% stake. However, the size of the IPO could be adjusted before the subscription period ends.
IPO Subscription Period
The subscription for the IPO will open on November 19 and close on:
- November 27 for the first tranche.
- November 28 for the second tranche.
The offer price range will be announced on November 19 or before the subscription period begins. The final offer price will be disclosed on November 29, and the shares will be listed on the Dubai Financial Market on December 10.
Upon completion of the offering, the company’s paid-up capital will reach Dh931.52 million.
Recent IPO Trends in the UAE
Talabat is the latest private company in the UAE to go public this year. Earlier in November, Lulu, a major retailer, raised Dh6.32 billion by selling a 30% stake. The IPO was oversubscribed 25 times, reflecting strong investor interest and confidence in the retail sector’s growth, driven by the Gulf region’s expanding population. Lulu will be listed on the Abu Dhabi Securities Exchange on November 14.
Tranche Allocations and Subscription Details
First Tranche (Retail Investors)
- Allocation: 5% of the offer shares, representing over 174.66 million shares.
- Minimum Subscription: Dh5,000, with additional investments to be made in increments of Dh1,000.
Guaranteed Allocation:
- Each retail investor is guaranteed a minimum of 1,000 shares.
- Eligible employees can secure at least 10,000 shares.
Second Tranche (Institutional Investors)
- Allocation: 95% of the offer shares, representing over 3.318 billion shares.
- Minimum Subscription: Dh5 million.
- Maximum Subscription: No limit set.
Joint Lead Managers and Receiving Banks
The joint lead managers for the IPO include:
- Emirates NBD Capital.
- Abu Dhabi Commercial Bank.
- EFG Hermes UAE.
- First Abu Dhabi Bank.
The lead receiving banks include Emirates NBD, Mashreq, Abu Dhabi Islamic Bank, Emirates Islamic, First Abu Dhabi Bank, and several others.
Dividend Policy
Talabat plans to distribute dividends twice annually:
- April 2025: A minimum dividend of Dh367.25 million ($100 million) for the fourth quarter of 2024.
- 2025–2026: A minimum dividend of Dh1.469 billion ($400 million) in two instalments for the financial results of 2025.
Dividends will be paid in October and April, with a target payout of 90% of net income.
Talabat’s Financial Growth
Talabat has seen consistent growth in recent years:
Gross Merchandise Value (GMV):
- 2023: Dh22.3 billion (up from Dh19 billion in 2022 and Dh14.5 billion in 2021).
Revenue: - 2023: Dh8 billion, a 26.6% increase from Dh6.3 billion in 2022.
First nine months of 2024: Dh7.6 billion, up 32% compared to Dh5.8 billion in the same period of 2023.
Leadership Team
Talabat’s board consists of six directors:
- Chairperson: Pieter-Jan Vandepitte.
- Vice-Chairman: Andreas Krause.
- Executive Director: Tomaso Rodriguez.
- Non-Executive Directors: Marie-Anne Popp, Abdullah Alharoun, and Muhammad Hussain Ghati Al Jbori.
CEO Tomaso Rodriguez stated, “Today, we are the leading MENA partner for over 65,000 restaurant and grocery businesses, serving six million monthly active users. Our future growth is backed by strong socio-economic conditions and a dedicated team. This IPO marks an exciting new chapter for Talabat.”
Looking Ahead
Talabat’s IPO is expected to attract significant interest from both retail and institutional investors, given its strong financial performance and leadership in the MENA region.
