Talabat, the leading food delivery platform in the Middle East, is preparing to launch one of the UAE’s largest IPOs of the year, with sources revealing that the offering could begin as soon as Monday. The Dubai-based business, owned by German company Delivery Hero, plans to raise over $1 billion in what is expected to be a highly anticipated public listing, marking a significant milestone in the region’s growing IPO landscape.
The listing comes at a time of rapid retail expansion in the Gulf, as governments across the region accelerate efforts to diversify their economies and reduce dependence on oil revenues. Talabat’s IPO follows a wave of public listings, including a recent $1.72 billion raise by hypermarket chain Lulu Retail, which reflects the increasing optimism surrounding the region’s non-oil sectors.
Founded in 2004 in Kuwait, Talabat has evolved into the Middle East’s largest food delivery platform, serving customers across the UAE, Qatar, Bahrain, Jordan, Iraq, Egypt, and Oman. The company, which boasts more than six million active customers as of July 2024, has also expanded its services to include grocery and health product deliveries, positioning itself as a major player in the region’s on-demand economy.
Despite the challenges faced by its parent company, Delivery Hero, whose shares have declined by over 74% since their peak in 2021, analysts view Talabat’s IPO as a major catalyst for the company’s recovery. Delivery Hero, which bought a majority stake in Talabat in 2015, is expected to retain a controlling share post-IPO. The move is seen as a strategy to ease Delivery Hero’s debt burden and revitalize investor confidence.
According to Jefferies analyst Giles Thorne, Talabat’s IPO could significantly de-leverage Delivery Hero’s balance sheet, with the company’s valuation estimated between 11.5 and 13.5 billion euros. The Middle East remains Delivery Hero’s fastest-growing market, with its gross merchandise value (GMV) in the region increasing by 30% in the last quarter.
As regional rivals like Saudi Arabia’s Jahez and Uber’s Careem continue to compete in the same space, Talabat’s IPO is poised to shape the future of the Middle East’s on-demand delivery sector. The offering reflects the broader economic shift taking place in the region, as tech and e-commerce companies increasingly drive growth and investor interest.
