Delivery Hero could see its Middle East subsidiary Talabat valued at US$12.9bn–$15.1bn as it heads towards a Dubai IPO later this year, unlocking considerable value for the German parent that has a market capitalisation of €10.4bn.

According to analysts at Jefferies, valuation is likely to warrant a premium to Saudi Arabia’s Jahez based on a combination of Ebitda and free cashflow multiples due to Talabat’s stronger market position and lower tax jurisdiction. The valuation represents 21–24.7 times 2025 EV/Ebitda.

India’s Zomato is deemed an unrealistic benchmark as it is trading in excess of 100 times EV/Ebitda while Jahez trades at 17.9 times EV/Ebitda on 2025 numbers.

Two bankers involved in the deal said the valuation was in the right area, though they added that international peers are also being considered given the lack of local comps.

While in a similar sector, one banker said Jahez was a very different business and listed on Saudi Arabia’s Nomu growth market.

A second banker said other well-known food delivery names are being considered, referencing US-listed Uber Technologies and DoorDash. Uber trades at 19.6 times EV/Ebitda on 2025 numbers while DoorDash trades at 21.5 times.

In 2023 Talabat achieved gross merchandise value of US$6.1bn and revenue from advertising grew to US$194m.

According to Jefferies, Talabat’s first-half growth in GMV places it third among its peers at 23% versus growth of 27.5% for Zomato and 30% for Jahez.

The analysts said Talabat’s key competitor is unlisted Careem, which has evolved from a car booking service to a broader offering since its US$3.1bn acquisition by Uber in 2019.

Uber owns Careem’s ride-hailing platform outright and has a 49% stake in its delivery business following a US$400m investment by UAE state telecoms operator e&. An app with around 20 digital services positions it as a clear threat to Talabat’s consumer base with the scope to represent greater utility to consumers, the analysts said.

For the wider development of Middle East ECM, Talabat is an interesting proposition as a tech and consumer company coming from an overseas issuer.

“It’s one of the first global holding companies [to list here], which is great,” the first banker said. “Historically this has not happened and it will be a really good thing for the DFM and for the UAE and hopefully gets a few more to consider it. There are many private equity firms with stakes and companies here. There’s been super strong interest so hopefully it will price well.”

Investors are increasingly seeking growth-slanted equity stories though this has been more notable in Saudi Arabia, which has seen fintechs such as Rasan marketed on high forward-looking multiples.

Emirates NBD, Morgan Stanley and JP Morgan have been mandated to run the Talabat sale.

Source: IFR