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German food delivery service Delivery Hero said the initial public offering (IPO) of its Middle East business Talabat is expected to raise around 1.42 billion euros ( $1.4 billion to $1.5 billion) in gross proceeds prior to its debut on the Dubai Financial Market (DFM) in December.
The offer period for more than 3.49 billion shares, representing a 15% stake, will run from November 19 to November 28, 2024, with the price range pegged at AED 1.50 to AED 1.60 ($0.41 to $0.44) per share.
The company will reveal the final offer price on November 29, while the first day of trading on DFM will be on December 10. The size of the offering may also change.
Talabat CEO Tomaso Rodriguez said the listing marks a new phase of the company’s growth journey. “All at Talabat are excited to be embarking on this new phase of growth.”
Rodriguez said the company will be able to “capitalise on favourable socioeconomic conditions” of the markets it operates in, citing that the region’s accelerating urbanisation, growing young population and rising online penetration are expected to “drive growth, customer engagement and platform spend.”
Talabat has six million active customers across eight countries in the Middle East and North Africa (MENA) region. It has presence in the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan and Iraq.
Last November 10, Delivery Hero confirmed plans to pursue an IPO of 15% stake of the total issued shares of Talabat Holding. Talabat bundles Delivery Hero’s business in the UAE and other parts of the Middle East and North Africa.
Talabat’s IPO could be one of the biggest in the UAE this year. Hypermarket operator Lulu Retail’s recent IPO generated $1.7 billion in proceeds in Abu Dhabi.
Delivery Hero intends to use the IPO proceeds to boost its capital structure.
Emirates NBD AM SPC acting on behalf of the UAE Strategic Investment Fund (UAE SIF), Abu Dhabi Pension Fund (ADPF), and Emirates International Investment Company (EIIC) will be cornerstone investors in the IPO with a total commitment of approximately AED 918 million.
Joint global coordinators include: Emirates NBD Capital, J.P. Morgan Securities, Morgan Stanley & Co International.
Abu Dhabi Commercial Bank, Barclays Bank, EFG-Hermes UAE Limited (in conjunction with EFG Hermes UAE LLC), First Abu Dhabi Bank, Goldman Sachs Bank Europe, ING Bank and UniCredit Bank are the joint bookrunners.
(Writing by Cleofe Maceda; editing by Seban Scaria)
