Delivery Hero announces 15% stake via IPO of Talabat on Dubai Financial Market
The list of all shares is expected on the DFM in mid-December of this year.
Delivery Hero’s management board has resolved, with the consent of its supervisory board, to pursue an initial public offering (IPO) of 15% of the total issued shares of Talabat Holding plc (Talabat).
It will be indirectly held by Delivery Hero, with the target to list all shares of Talabat on the Dubai Financial Market in mid-December 2024.
The public offering and listing would be made based on a local prospectus that has been approved by the Securities and Commodities Authority of the UAE on 7 November and was published on Talabat’s website on 11 November.
“It gives us great pleasure to announce our intention to proceed with Talabat’s IPO,” said Tomaso Rodriguez, CEO of Talabat.
“Our deep familiarity with a region that is experiencing strong economic and demographic growth has resulted in a robust financial profile with GMV of US$61b in 2023, a 24% CAGR between 2021-2023, and adjusted free cash flow of over US$300m in 2023,” Rodriguez added.
Delivery Hero would retain the majority interest in Talabat, be subject to a lock-up of 180 days following listing, be represented with half of the directors on the board of Talabat and continue to consolidate Talabat in its consolidated financial statements after implementation of the intended IPO.
Delivery Hero would use the IPO proceeds that depend on the number and price of Talabat shares to be sold by Delivery Hero for general corporate purposes and to further optimise its capital structure.
Following the intended IPO, Talabat currently plans to pay a minimum dividend of AED 367.25m (US$100m) in April 2025 in respect of the financial results of the fourth quarter of 2024 (Q4 2024).
The company also intends to pay a minimum dividend in an amount of AED1.469b (US$400m) in two instalments in October 2025 and April 2026 in respect of the financial results of 2025.
Thereafter, Talabat intends to pay dividends twice each calendar year, in each case with a target net income payout of 90%.
In 29 August, Delivery Hero announced its preparation to list its food delivery and quick commerce business that operates in the United Arab Emirates (UAE) and other countries in the Middle East and North Africa under the talabat brand on the Dubai Financial Market in Q4 2024.
