Talabat Expands IPO Size By 5% To Meet Strong Investor Demand
Talabat, the MENA region's premier online platform for food ordering, delivery, takeaway, and grocery retail, has announced a significant expansion of its initial public offering (IPO) on the Dubai Financial Market (DFM).
This decision comes in response to robust demand from international and regional investors, particularly noticeable in the Second Tranche of the offering. A noteworthy increase in anchor orders from major global investors focused on long-only and technology sectors has particularly underscored this elevated interest.
In light of the substantial investor appetite, Talabat has decided to augment the offering to 4,657,648,125 shares, up from the initially planned 3,493,236,093 shares. This escalation means that the IPO now encompasses 20% of Talabat's total issued share capital, a notable rise from the previously anticipated 15%.
This adjustment aims not only to accommodate the high demand but also to promote a stable trading environment for Talabat post-listing. The entirety of the shares on offer are currently held by the company's sole shareholder, Delivery Hero MENA Holding GmbH, a direct subsidiary of the publicly traded Delivery Hero SE.
Despite the increase in the number of shares, the price range for the IPO remains set between AED 1.50 and AED 1.60 per share. Assuming full subscription within this price bracket, Talabat anticipates raising between AED 7.0 billion (approximately US$ 1.9 billion) and AED 7.5 billion (approximately US$ 2.0 billion). This revised offering will significantly contribute to the Qualified Investor Offering (Second Tranche), which targets Professional Investors as outlined in the UAE Prospectus.
Subscription Details and Market Entry
The IPO will be organized into two distinct tranches: a UAE Retail Offering, open to UAE Retail Investors and other eligible participants within the UAE, and a Qualified Investors Offering aimed at Professional Investors.
The subscription window for UAE Retail Investors is set to close on 27 November 2024, while Professional Investors will have until 28 November 2024 to participate. The final share price will be established through a book-building process, with the announcement scheduled for 29 November 2024. Talabat's entry to the DFM, slated for around 10 December 2024, hinges on prevailing market conditions and the acquisition of pertinent regulatory consents within the UAE.
In preparation for the IPO, Talabat has released the UAE Prospectus and a public announcement for the UAE Retail Offering, alongside an International Offering Memorandum for the Qualified Investor Offering. These documents were made available on 11 November and 19 November 2024, respectively, offering comprehensive details about the offering. Interested parties can access these materials through Talabat's designated IPO website.
A consortium of financial institutions has been enlisted to facilitate the IPO process. Emirates NBD Capital PSC leads as the Listing Advisor, while J.P. Morgan Securities PLC and Morgan Stanley & Co International PLC serve as joint global coordinators and joint bookrunners. Additional banks, including Abu Dhabi Commercial Bank PJSC and First Abu Dhabi Bank PJSC, among others, have been appointed as joint bookrunners and Receiving Banks, ensuring a broad base of support for the offering.
Furthermore, the Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has affirmed the IPO's compliance with Shariah principles, providing an additional layer of assurance for investors mindful of such considerations.
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