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 per cent stake, will run from November 19 to November 28, 2024.
The issue is priced in the range of 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.
The issue is slated to be listed on DFM for trading on December 10.
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,” he said.
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, with a presence in the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan and Iraq.
Delivery Hero confirmed plans to pursue an IPO of 15 per cent stake of the total issued shares of Talabat Holding in November last.
Talabat bundles Delivery Hero’s business in the UAE and other parts of the Middle East and North Africa.
The delivery app’s IPO is expected to 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.
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