Effective now, UAE Retail Investors' IPO subscription period expires on November 27, 2024; Professional Investors' closes on November 28, 2024. . On November 29, 2024 the final offer price will be revealed.

The IPO's pricing range is set between Dh1.50 and Dh1.60 per share, so determining the offering size between Dh5.24 billion (about $1.43 billion) and Dh5.59 billion (about $1.52 billion). This translates, at the time of listing, an anticipated market valuation of Dh34.93 billion ($9.51 billion) to Dh37.26 billion ($10.15 billion), Subject to relevant laws and regulatory permissions, the selling shareholder's current shares make up the whole offer; she has the right to change the offering amount before the subscription period ends.

A well-known food delivery company in the UAE and surrounding areas, Talabat is a division of Berlin-based Delivery Hero that bought it in 2015. Apart from streamlining its financial structure, Delivery Hero intends to use the IPO proceeds for general corporate reasons, Further underlining the appeal of this offering to investors, Tatiana Lisitsina of Bloomberg Intelligence says that Talabat's strong growth trajectory and good margins support a value premium for the IPO.

The IPO also clearly states a dividend policy. Based on its Q4 2024 financial results, Talabat pledges a minimum dividend of around $100 million (Dh367.25 million) in April 2025, Based on 2025 financial performance, the company also expects to pay dividends in two installments totaling $400 million (Dh1.47 billion) in October 2025 and April 2026.

An all-encompassing team of financial advisers and bookrunners is driving the IPO process. Serving as joint worldwide coordinators and bookrunners are Emirates NBD Capital, J.P. Morgan Securities, and Morgan Stanley & Co International. Joint bookrunners have also been named from several other well-known financial organizations like Abu Dhabi Commercial Bank, Barclays Bank, EFG-Hermes, First Abu Dhabi Bank, Goldman Sachs, ING Bank, and UniCredit Bank, Supported by several local and international banks as Receiving Banks, Emirates NBD Bank PJSC is serving as the Lead Receiving Bank.

Acting as Listing Advisor, Emirates NBD Capital PSC guarantees that the IPO complies with legal and administrative criteria. Moreover, the Internal Shariah Supervisor Committee of Emirates NBD Bank PJSC has declared the offering in line with Shariah rules. Investors are advised, therefore, to perform their own due diligence to verify compliance depending on their needs.

The IPO of Talabat captures its strategic ambition for long-term expansion and higher shareholder value, The company wants to establish its leadership in the regional food delivery market by publicizing itself and using the obtained funds to support its operational and expansion objectives, Supported by a solid track record and strong financial health, the DFM listing will give investors a chance to join Talabat in its bright future.

As Talabat changes to a publicly traded company with more openness and building investor confidence, this milestone marks an interesting new chapter for it, Anticipating the influence of this well-publicized IPO on the larger market environment, the market will closely track the final pricing and investor demand as the subscription period advances.

Talabat sets IPO price range at Dh1.50-Dh1.60 as IPO period begins

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