Talabat, the leading on-demand food and quick-commerce app, announced on November 11 that its parent company, Delivery Hero MENA Holding, will sell over 3.49 billion ordinary shares through an initial public offering (IPO) at a nominal value of AED0.04 per share. This offering will represent a 15% stake in the company.
The IPO subscription period will open on November 19 and run until November 27 for the first tranche, with the second tranche closing on November 28. The price range for the offer will be announced on November 19, with the final offer price set to be revealed on November 29. Once the offering is complete, Talabat’s paid-up capital will total AED931.52 million (931,529,625).
Talabat becomes the latest private UAE company to go public in 2024, following the highly successful IPO of retail giant Lulu earlier this month. Lulu raised AED6.32 billion in a 30% stake sale, oversubscribed by 25 times, due to the strong growth prospects of the retail sector in the Gulf region.
In the first tranche, Talabat has allocated 5% of the offered shares (approximately 174.66 million shares) for retail investors. These investors will need to purchase a minimum of 1,000 shares, with eligible employees guaranteed a minimum allocation of 10,000 shares. The minimum subscription in the first tranche is AED5,000, with additional investments in AED1,000 increments.
The second tranche, targeted at institutional investors, will cover 95% of the shares (approximately 3.32 billion shares). The minimum subscription for institutional investors is set at AED5 million, with no maximum subscription limit.
The IPO is being managed by joint lead managers Emirates NBD Capital, Abu Dhabi Commercial Bank, EFG Hermes UAE, and First Abu Dhabi Bank, with receiving banks including Emirates NBD Bank, Emirates Islamic Bank, Abu Dhabi Islamic Bank, and others.
Talabat’s board consists of six directors, led by chairperson Pieter-Jan Vandepitte, and includes vice-chairman Andreas Krause, executive director Tomaso Rodriguez, and others.
Dividend Policy
Talabat plans to pay a minimum dividend of AED367.25 million ($100 million) in April 2025, with additional dividends planned for October 2025 and April 2026. The company intends to pay dividends twice annually, with a target payout of 90% of net income.
In 2023, Talabat reported a gross merchandise value (GMV) of AED22.3 billion, up from AED19 billion in 2022, and revenue of AED8 billion, reflecting a 26.6% year-on-year increase. For the first nine months of 2024, revenue stood at AED7.6 billion, a 32% increase from the same period in 2023.
