Today's Edition
A. Sreenivasa Reddy (Abu Dhabi)
Talabat has announced an increase in the size of its Initial Public Offering (IPO) from 15% to 20% of the company’s total stake.
According to a company statement, the number of shares available for allotment has been raised to 4.657 billion, up from the 3.493 billion shares initially announced at the IPO’s launch.
As a result of this adjustment, the IPO is now expected to raise between Dh7 billion and Dh7.5 billion, depending on the final offer price.
“The decision to increase the size of the offering has been taken on the back of a number of sizeable anchor orders from global and technology sector investors, including several that are investing for the first time on the Dubai Financial Market (DFM),” the company stated.
The additional 1,164,412,032 shares are exclusively allocated to professional investors, comprising high-net-worth individuals, investment firms, and pension funds.
“Increasing the IPO size is a smart move by Talabat, showing strong investor confidence. It positions the company to raise more capital, attract experienced stakeholders, and make a solid debut on the DFM,” said Samer Mardini, Chief Investment Officer at Yorklyn Asset Management.
The share is likely to be priced at the high end of the range, between Dh1.50 and Dh1.60, Bloomberg News reported, quoting sources. At Dh1.60 a share, Talabat’s market capitalisation on listing will be around Dh37.5 billion.
“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.
“The offer size increase will also boost market liquidity on the DFM, aligning with the UAE's economic diversification goals and solidifying its status as a hub for IPOs,” he further noted.
The subscription period remains unchanged, closing on November 27 for retail investors and November 28 for professional investors. The final offer price will be announced on November 29, with the company’s shares expected to list on the DFM on or around 10 December.
