A. Sreenivasa Reddy (Abu Dhabi)
German company Delivery Hero, the owner of Talabat, the Middle Eastern food delivery service provider, plans to sell a 15% stake in an initial public offering (IPO), the Berlin-based company said in a statement.
Talabat's shares are set to list on the Dubai Financial Market in mid-December 2024.
The public offering and listing will be based on a prospectus approved by the UAE’s Securities and Commodities Authority (SCA) on November 7, with publication on Talabat’s website scheduled for Monday, November 11, according to the statement.
"Delivery Hero will retain a majority interest in Talabat, be subject to a 180-day lock-up period following the listing, and be represented with half of the directors on Talabat’s board," the statement added.
Founded in 2004 in Kuwait, Talabat has expanded to serve customers in the UAE, Oman, Qatar, Bahrain, Jordan, Iraq and Egypt, with an estimated six million active customers.
Delivery Hero may adjust the offering size, subject to SCA approvals, the statement noted.
The IPO proceeds will be used for “general corporate purposes and to further optimise the capital structure” of Delivery Hero, as outlined on its website.
The company has also detailed its dividend policy, planning a minimum dividend of approximately $100 million in April 2025, covering Q4 2024 financial results. It also targets two installments totaling around $400 million in October 2025 and April 2026, based on 2025 results.
Talabat intends to pay dividends twice yearly, aiming for a 90 percent payout of net income. Delivery Hero will benefit from these dividends based on its retained majority stake, the statement confirmed.