German-based company Delivery Hero expects to raise between Dh5.24 billion ($1.43 billion) and Dh5.59 billion ($1.52 billion) in gross proceeds from the initial public offering (IPO) of Emirati food delivery company Talabat.
The Dubai Financial Market (DFM) IPO will float 3.49 billion shares, equivalent to 15% of Talabat’s issued capital. The subscription period for retail investors in the UAE opens on November 19 and closes on November 27. Professional investors have until November 28.
Delivery Hero has targeted a market capitalisation at the time of listing of between Dh34.93 billion ($9.51 billion) and Dh37.26 billion ($10.15 billion). The final price range has been set at Dh1.50 to Dh1.60 ($0.41 to $0.44) per share. The first day of trading will be December 10.
The cornerstone Investors include Emirates NBD, Abu Dhabi Pension Fund and Emirates International Investment Company, which have committed Dh918 million ($250 million).
Delivery Hero acquired Talabat in 2016, as part of a wider deal with Rocket Internet, which had purchased the food delivery service the year prior, in a $170 million deal, one of the bigger deals for web-based businesses in the Middle East at the time.
Tomaso Rodriguez, CEO of Talabat, expressed enthusiasm about the strong interest from both local and international investors. He said, “We are delighted to open subscriptions today for the Talabat IPO on Dubai Financial Market (DFM) having seen strong local and international investor interest since announcing our intention to float.”
“Our well-defined growth strategy is focused on enhancing our product offering and increasing our market penetration, investing in our innovative fintech and loyalty programmes, scaling our advertising offerings and exploring adjacent categories, which we believe presents an exciting opportunity for investors,” Rodriguez added.
Talabat, founded in the Middle East in 2004, serves over 65,000 businesses and six million active customers across eight countries. Last year, Talabat’s gross merchandise value (GMV), which measures the total value of all goods sold, hit 5 billion euros ($5.57 billion).
