DUBAI - Delivery Hero's DHER.DE Talabat, which has just launched an IPO, plans to focus on robust growth prospects in existing markets and convincing its food delivery customers to also use its retail and grocery delivery businesses, its CEO said.

Delivery Hero is planning to sell 15% of Talabat or 3.49 billion shares in the Dubai listing. Sources said last week that the offering could be worth more than $1 billion, making it one of the UAE's biggest this year.

Founded in 2004 in Kuwait, the firm expanded to the United Arab Emirates, Oman, Qatar, Bahrain, Jordan, Iraq and Egypt. It had more than six million active customers as of September.

Talabat Chief Executive Tomaso Rodriguez said that rather than expanding into a new country like Saudi Arabia, the company would concentrate on growth in existing markets.

"We believe that there's a better return for every dollar we invest in these countries," he told Reuters in an interview, adding that the firm's current markets represent an addressable population of about 71 million.

The offering will take place Nov. 19-28 and its shares are expected to start trading on or around Dec. 10.

Talabat plans to add both local and international investors, Rodriguez said, without disclosing further details or commenting on the potential valuation of the business.

Proceeds will go to Delivery Hero and will be used "for general corporate purposes," he added.

Talabat plans to distribute a dividend of about $100 million for the last quarter of this year and to pay out dividends worth $400 million for 2025. In the following years, it intends to pay out at least 90% of its net income in dividends.

It logged a gross merchandise value of $6.1 billion last year and expects the figure to grow around 22%-23% in 2024, Rodriguez added.

Emirates NBD, JP Morgan and Morgan Stanley have been hired as joint global coordinators and joint book-runners.

(Reporting by Federico Maccioni; Writing by Nadine Awadalla; Editing by Edwina Gibbs)