🍔 Delivery Hero targets $1B from Talabat IPO
Delivery Hero SE is preparing to take its Middle East food delivery unit, Talabat, public in Dubai. The company has hired Emirates NBD Bank, Morgan Stanley, and JPMorgan Chase to manage the listing. The IPO is expected to raise up to $1B. This move comes as the Gulf region sees a surge in initial public offerings, including various industries from perfumes to oil services. Talabat’s listing is slated for the fourth quarter of 2024, according to insiders, although no final decisions on its valuation have been made.
🏦 Major banks back the deal
Emirates NBD, Morgan Stanley, and JPMorgan are leading the financial efforts to get Talabat listed. More banks may join later as Delivery Hero finalizes the deal. The valuation of Talabat could hit €5.4B ($5.8B), based on estimates from Bloomberg Intelligence. The unit’s IPO could be one of the biggest in the food delivery sector. RBC Capital Markets values Delivery Hero’s broader Middle East and North Africa business at €5B, which implies a valuation of 1.3 times enterprise value-to-sales.
🌍 Gulf IPO boom and market potential
Gulf IPOs have become popular after a quiet summer, with several firms oversubscribed within hours of their announcements. Talabat’s strong presence in the region could make it a highly sought-after stock. The Middle Eastern food delivery market is lucrative, offering high profits and growth potential. However, analysts like Tatiana Lisitsina and Diana Gomes from Bloomberg warn that reduced ownership of Talabat could lead to "leaking vital cash flow" to new shareholders.
💼 Why this matters for Delivery Hero
Listing Talabat could unlock significant cash for Delivery Hero, helping improve liquidity. Talabat, operating in several Gulf countries, has become one of the leading food delivery services in the region. The IPO is a strategic move to tap into the Gulf’s booming financial markets and position Talabat for further growth. As more firms enter the IPO pipeline, this could mark a major turning point for the food delivery industry in the Middle East.
Will Talabat’s IPO be the largest food delivery listing?
