Talabat Holding Sets IPO Offer Price Range And Launches Subscription Period On Dubai Financial Market

Talabat Holding plc has announced the price range for its initial public offering (IPO) on the Dubai Financial Market. The share price is set between AED 1.50 and AED 1.60, valuing the company at approximately AED 34.93 billion to AED 37.26 billion. A total of 3,493,236,093 shares will be available, representing 15% of Talabat's total issued share capital.

The shares offered are existing ones held by Delivery Hero MENA Holding GmbH, a subsidiary of Delivery Hero SE. Emirates NBD AM SPC, Abu Dhabi Pension Fund, and Emirates International Investment Company LLC are cornerstone investors with a commitment of around AED 918 million. The subscription period for UAE retail investors ends on 27 November 2024, while professional investors have until 28 November 2024.

The final offer price will be determined through a book-building process and announced on 29 November 2024. Trading on the Dubai Financial Market is expected to commence around 10 December 2024.

Tomaso Rodriguez, CEO of Talabat, expressed enthusiasm about the IPO launch due to strong investor interest. "We are delighted to open subscriptions today for the talabat IPO on Dubai Financial Market (DFM) having seen strong local and international investor interest since announcing our intention to float," he stated.

Founded in the Middle East in 2004, Talabat now partners with over 65,000 restaurants and grocery businesses across eight MENA countries and serves more than six million active customers.

Rodriguez highlighted Talabat's growth strategy focused on enhancing product offerings and market penetration. The company plans to invest in FinTech and loyalty programmes while expanding advertising services and exploring new categories.

Advisors and Compliance

Emirates NBD Capital PSC is serving as Listing Advisor for the IPO. Joint global coordinators include J.P. Morgan Securities PLC and Morgan Stanley & Co International PLC. Several banks have been appointed as joint bookrunners, including Abu Dhabi Commercial Bank PJSC and Barclays Bank PLC.

The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has confirmed that the offering complies with Shariah principles. However, investors should conduct their own checks to ensure compliance with Shariah principles for their purposes.

This IPO marks a significant step for Talabat as it seeks to expand its presence in a region with favourable socioeconomic conditions and a growing market.

With inputs from WAM