Talabat Prepares for IPO with Plans to List on Dubai Stock Exchange

This move represents a major shift for the brand, transitioning it from a household name in food delivery to a potential investment opportunity for Dubai residents and regional investors.

Parent Company Delivery Hero SE Announces Listing on DFM

The announcement came from Talabat's parent company, Delivery Hero SE, a global leader in online food delivery services headquartered in Germany. The company revealed on Thursday that it plans to list Talabat on the Dubai Financial Market (DFM) by the fourth quarter of 2024.

Delivery Hero SE indicated that the IPO might involve a secondary sale of shares. Despite the public offering, Delivery Hero intends to retain a majority interest in Talabat, ensuring that it continues to have significant control over its rapidly growing Middle Eastern subsidiary.

Talabat’s Growth and Strategic Market Entry

Talabat’s IPO plans highlight its rapid growth and the strategic importance of the Middle Eastern market within Delivery Hero’s global operations. As one of the fastest-growing food delivery services in the region, Talabat is well-positioned to attract significant investor interest.

The success of the IPO will depend on favorable market conditions and the necessary regulatory approvals. With the Middle Eastern market showing strong demand for food delivery services, Talabat's public listing is expected to generate substantial interest among investors looking to capitalize on the sector’s growth.

A Flourishing IPO Environment in the UAE

Talabat’s move to list on the DFM is part of a broader trend of increased IPO activity in the UAE, reflecting the continued economic momentum in the Arab world’s second-largest economy. The IPO market has been particularly active, with several high-profile companies seeking to go public.

This announcement follows closely on the heels of the NMDC Group's decision to list its subsidiary, NMDC Energy, on the Abu Dhabi Securities Exchange (ADX). The NMDC Group has secured approval from the UAE’s market regulator, the Commodities and Securities Authority, for what is anticipated to be the largest IPO in the UAE this year. The parent company plans to raise AED 3.22 billion ($877 million) through the sale of 1.15 billion shares at AED 2.80 per share.

The ongoing IPO momentum is also evidenced by recent listings, such as Spinney’s on the DFM and Parkin’s IPO in March, which was the first in the UAE capital markets this year. The latter raised AED 1.57 billion, with demand hitting a record AED 259 billion.

Dubai’s Growing Appeal to Investors

Over the past three years, companies in Dubai have raised AED 34.5 billion through IPOs, with aggregate investor demand for these listings exceeding AED 1 trillion. This trend has bolstered the DFM's performance, making its general index one of the top performers globally last year.

The Dubai government has also been proactive in encouraging IPOs, announcing in November 2021 plans to list 10 state-owned companies and establishing an AED 2 billion market maker fund. The goal is to expand the size of Dubai’s financial market to AED 3 trillion, a target that has been supported by the listing of six state-owned enterprises since 2022.

Looking Ahead: A New Chapter for Talabat

As Talabat prepares to enter the share market, it will transition from a convenient food delivery app to a tangible investment option for regional investors. This IPO is expected to unlock further growth opportunities for Talabat, reinforcing its status as a leading player in the Middle East's food delivery industry.

The listing of Talabat on the DFM is set to be a landmark event, not just for the company but also for the Dubai stock market, as it welcomes another high-profile brand to its ranks. Investors and market watchers alike will be keenly observing how Talabat's market debut unfolds in what promises to be a pivotal moment for both the company and the region's financial markets.