Talabat, a subsidiary of Delivery Hero (DHER.DE), which recently launched its IPO, is focusing on driving strong growth in its existing markets and encouraging its food delivery customers to also engage with its retail and grocery delivery services, according to its CEO.
Delivery Hero's Talabat launches IPO
Delivery Hero plans to sell 15% of Talabat, equivalent to 3.49 billion shares, in its upcoming Dubai listing. Sources indicate that the offering could exceed $1 billion, positioning it as one of the UAE’s largest IPOs this year.
Founded in 2004 in Kuwait, Talabat expanded across the Middle East to countries such as the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt. As of September, the company had over six million active customers.
Talabat CEO Tomaso Rodriguez emphasized that instead of venturing into new markets like Saudi Arabia, the company will focus on growing within its current markets. "We believe that every dollar we invest in these countries yields a better return," he said in an interview with Reuters, noting that the total addressable population in these markets is approximately 71 million.
The IPO will take place between November 19 and November 28, with shares expected to begin trading around December 10. Talabat intends to attract both local and international investors, though further details and a potential valuation remain undisclosed.
How proceeds will be used
The proceeds from the IPO will go to Delivery Hero for "general corporate purposes." Talabat also plans to distribute a dividend of around $100 million for Q4 2024 and a total of $400 million in dividends for 2025. Going forward, the company intends to distribute at least 90% of its net income in dividends.
