UAE: Talabat to Launch IPO Subscription on November 19

Talabat, a leading on-demand food and quick commerce (Q-commerce) platform, recently announced that its parent company, Delivery Hero MENA Holding, plans to sell over 3.493 billion ordinary shares in an upcoming initial public offering (IPO). Every share will be worth minimal Dh0.04. Based on the IPO prospectus, this IPO offers a 15% share in the company; although, the offering size could be changed before the subscription period ends.

The subscription period for this IPO will begin on November 19. For institutional investors and ordinary investors respectively, it will last until November 28 and November 27. November 19 will see the announcement of the share price range either at or before the start of the offer period. Talabat intends to finalize the offer price on November 29; the shares are set to be formally listed on the Dubai Financial Market on December 10. Talabat's paid-up capital once completed will be Dh931.52 million.

As shown with Lulu, a sizable retail company that lately raised Dh6.32 billion by selling a 30% share, this IPO follows a trend in the UAE of private companies becoming public. With 25 times of oversubscription for the Lulu IPO, the retail sector growth potential of the Gulf was clearly highly sought after. On November 14 Lulu will open on the Abu Dhabi Securities Exchange.

The IPO from Talabat will feature two tranches. Targeted at retail investors, the first tranche comprises 5% of the total offer—or about 174.66 million shares. Whereas qualified employees will have a guaranteed minimum of 10,000 shares apiece, retail investors will have a minimum guaranteed allotment of 1,000 shares. The minimal investment at first is Dh5,000; additional investments are possible in Dh1,000 increments.

Targeting institutional investors, the second tranche spans 95% of the offer (around 3.318 billion shares). There is no maximum restriction indicated; the minimum subscription for this tranche is set at Dh5 million.

Emirates NBD Capital, Abu Dhabi Commercial Bank, Efg Hermes UAE, and First Abu Dhabi Bank will oversee Talabat's IPO. Leading receiving banks include WIO Bank, Mashreq, Mbank, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Emirates NBD Bank, Emirates Islamic Bank.

Pieter-Jan Vandepitte chairs Talabat's board; Andreas Krause is vice-chairman. Among the other board members are Marie-Anne Popp (non-executive director), Tomaso Rodriguez (executive director), Abdullah Alharoun (independent, non-executive), and Muhammad Hussain Ghati Al Jbori (independent, non-executive).

The corporation has also sent forth its dividend policy. Reflecting its fourth-quarter 2024 financial results, Talabat intends to pay a minimum dividend of Dh367.25 million ($100 million) in April 2025. Based on financial performance for the year ending December 31, 2025, the business intends a minimum dividend of Dh1.49 billion ($400 million), to be disbursed in two payments in October 2025 and April 2026. With an interim payment each October for the first-half results and a last payment each April based on full-year outcomes, Talabat seeks to distribute dividends twice annually. A 90% net income payout is the aim.

Talabat's executive director, Tomaso Rodriguez, underlined that serving over six million active monthly users throughout eight regional markets, Talabat is the leading partner for over 65,000 restaurant and grocery stores. Citing good socioeconomic conditions and a strong growth strategy motivated by a qualified staff, Rodriguez expressed hope regarding Talabat's future.

Talabat's gross merchandise value (GMV) was Dh22.3 billion in 2023, up from Dh19 billion in 2022 and Dh14.5 billion in 2021. Rising 26.6%, its income went from Dh6.3 billion in 2022 to Dh8 billion in 2023. Talabat recorded revenue of Dh7.6 billion during the first nine months of 2024, up 32% from Dh5.8 billion in the same time in 2023.

Talabat's IPO and financial successes mirror the UAE's dynamic economic climate and growing investor curiosity in tech-driven consumer goods in the country.