A.SREENIVASA REDDY (ABU DHABI)
Talabat's initial public offering (IPO) has marked a significant milestone, raising Dh7.5 billion and becoming the largest IPO in the UAE this year.
The company finalised its offer price at Dh1.60 per share, hitting the top end of its announced price range. This achievement positions it ahead of Lulu Retail, which raised Dh6.32 billion in November by offering 20% of its stake.
Earlier in the year, NMDC Energy raised Dh3.22 billion in September through the sale of a 23% stake, listing on the Abu Dhabi Securities Exchange (ADX). Other notable IPOs this year include Alef Education Holding, which raised Dh1.89 billion in June by offering 20% of its stake on the ADX, while ADNH Catering raised Dh864 million in May by offering 40% of its stake. Spinneys raised Dh1.38 billion and Parkin garnered Dh1.574 billion through their respective IPOs on the Dubai Financial Market (DFM).
Talabat has confirmed that its IPO was oversubscribed in "double digits", reflecting strong investor interest across both tranches of the offering.
"The overwhelming response to Talabat's IPO, which saw substantial demand across both tranches, is a testament to the exceptional work and achievements of our teams over the past 20 years," said Tomaso Rodriguez, Chief Executive Officer of Talabat.
At the final offer price, Talabat's market capitalisation will reach Dh37.3 billion, further emphasising its robust valuation.
"This robust demand for Talabat shares aligns with a broader surge in regional IPO activity, which has raised nearly $11 billion so far this year," said Vijay Valecha, Chief Investment Officer at Century Financial.
Food delivery companies in emerging markets are showing strong growth, as evidenced by the stellar listing of Swiggy in the Indian market. "With the UAE's young, tech-savvy population accustomed to ordering deliveries, Talabat's fundamentals are well supported, positioning the company's IPO to perform well on its debut," Valecha added.
Talabat announced that retail subscribers would receive confirmation of their allocations via SMS on December 6, with refunds to be processed on the same day. The company's shares are scheduled to be listed on the Dubai Financial Market under the ticker symbol "TALABAT" on December 10.
The company also outlined its dividend policy, which includes a minimum payout of $100 million (Dh367.25 million) in April 2025, covering the financial results of Q4 2024, and two instalments totalling approximately $400 million (Dh1.469 billion) in 2025 and 2026 based on results for 2025.
The IPO process was coordinated by Emirates NBD Capital, J.P. Morgan Securities, and Morgan Stanley & Co International, who served as joint global coordinators and book-runners. Talabat's performance is widely anticipated to set a strong precedent for future IPOs in the region.