Talabat’s share price increases on DFM trading debut following US$2B IPO

UAE – The shares of food delivery company Talabat Holdings surged by almost 7% on their first day of trading, following the company’s successful raise of Dh7.5 billion ($2.04 billion) in the Gulf’s largest initial public offering of the year.

Talabat’s shares began trading on the Dubai Financial Market (DFM) on Tuesday, opening at AED 1.70 (US$0.46), slightly above its IPO price of AED 1.60.

The stock reached AED 1.72 (US$0.47) but quickly dropped to AED 1.69 (US$0.45) within 10 minutes, according to LSEG data.

In the initial moments of trading, more than 239 million shares exchanged hands, totaling over AED 407 million (US$110.8 million).

The offering, representing 20% of Talabat’s share capital, was floated by Delivery Hero, the Berlin-based food delivery company that holds a majority stake in the company.

Talabat’s IPO, which it described as “the largest global technology IPO in 2024 to date,” saw a significant oversubscription level last month.

Delivery Hero, listed in Frankfurt, continues to hold a controlling interest in Talabat. Post-listing, the company has announced plans to pay a minimum dividend of $100 million in April for the fourth quarter of this year.

Additionally, Talabat will pay $400 million in two instalments in October 2025 and April 2026 for the financial results of 2025.

Talabat’s listing adds to the growing trend of regional companies tapping into the capital markets amid strong economic momentum in the region.

According to PwC’s Q3 2024 IPO Watch report, the aggregate value of IPO proceeds in the third quarter of this year surged to US$904 million, up from US$523 million in the same period last year.

Talabat’s growth strategy focuses on five pillars: enhancing its product offerings and market penetration, expanding advertising initiatives, investing in customer loyalty and fintech, exploring new product categories, and pursuing strategic investments and acquisitions.

This listing further strengthens Dubai’s IPO pipeline, with total funds raised on the DFM in 2024 reaching AED 10.48 billion (US$2.8 billion). Dubai has been the best-performing regional market for the second consecutive year, supporting the UAE’s broader economic diversification efforts.

Talabat operates in the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq, serving over six million active customers, more than 65,000 partner vendors, and employing around 119,000 riders.

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