Delivery Hero plans IPO for Talabat in Dubai to attract local investors

Delivery Hero announced plans to list its Middle East unit, Talabat, on the Dubai Financial Market in the fourth quarter of 2024. This move aims to attract local investors to co-invest and support the growth of Talabat, which operates in several Middle Eastern countries, including Saudi Arabia and the UAE. The announcement led to a nearly 10% increase in Delivery Hero's shares, reflecting positive market sentiment regarding the IPO. CEO Niklas Ostberg emphasized the importance of the Middle East to Delivery Hero's overall business, noting that the region accounted for approximately 28% of the company's revenues in the second quarter of 2024. Talabat generated revenues of 874.7 million euros during this period, marking a 37% year-over-year increase. The IPO is seen as a strategic move to strengthen the company's presence in a rapidly growing market. While the company has not disclosed specific details regarding the valuation or share price target for the IPO, it indicated that the listing could involve a secondary sale of shares, allowing Delivery Hero to retain majority ownership post-IPO. The success of the IPO will depend on market conditions and regulatory approvals. Ostberg mentioned that the company is open to exploring further opportunities for value creation, including potential sales of strategic assets. The focus on local investment is part of a broader strategy to build a robust support base in the Middle East, which is crucial for the company's future growth.