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UAE: Talabat IPO subscription opens on November 19

The final offer price will be announced on November 29 and shares will be listed on the Dubai Financial Market on December 10

Published: Mon 11 Nov 2024, 10:36 PM

Updated: Tue 26 Nov 2024, 7:24 AM

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Talabat, the leading on-demand food and Q-commerce app for everyday deliveries, said on Monday its parent company, Delivery Hero Mena Holding, will sell over 3.493 billion (3,493,236,093) ordinary shares through an initial public offering (IPO) with a nominal value of Dh0.04 per share.

According to a prospectus published in Khaleej Times, the company will offload a 15 per cent stake and may amend the size of the two-tranche IPO before the end of the subscription period.

Subscription for the IPO will open on November 19 and will run till November 27 for the first tranche and till November 28 for the second tranche. The offer price range will be announced on November 19 or before the start of the offer period.

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The final offer price will be announced on November 29 and shares will be listed on the Dubai Financial Market on December 10.

Upon the completion of the offering, the company’s paid-up capital will be Dh931.52 million (931,529,625).

Talabat is the latest UAE private company to go public this year. Earlier this month, retail major Lulu raised Dh6.32 billion through a 30 per cent stake sale which was oversubscribed 25 times on the back of strong fundamentals and growth prospects for the retail sectors in the Gulf region amidst a growing population. It would be listed on the Abu Dhabi Securities Exchange on November 14.

Under the first tranche, Talabat has allocated 5 per cent of the offer share, representing over 174.66 million (174,661,805) shares for the retail investors. Each subscriber other than eligible employees will have a minimum of guaranteed 1,000 shares and each eligible employee will have a minimum guaranteed allocation of 10,000 shares.

The minimum subscription in the first tranche has been set at Dh5,000 with any additional investment to be made in Dh1,000 increments.

The second tranche is open for institutional investors, covering 95 per cent of the offer shares, representing over 3.318 billion (3,318,574,288) shares.

The minimum subscription in the second tranche has been set at Dh5 million. However, there is no maximum subscription limit set by the company.

Joint lead managers are Emirates NBD Capital, Abu Dhabi Commercial Bank, EFG Hermes UAE and First Abu Dhabi Bank.

Lead receiving banks are Emirates NBD Bank, Emirates Islamic Bank, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mashreq, Mbank and WIO Bank.

Talabat’s board consists of six directors, led by Pieter-Jan Vandepitte, chairperson; Andreas Krause, vice-chairman; Marie-Anne Popp, non-executive director; Tomaso Rodriguez, executive director; Abdullah Alharoun, independent, non-executive; and Muhammad Hussain Ghati Al Jbori, independent, non-executive.

Dividend policy

The company intends to pay a minimum dividend of Dh367.25 million ($100 million) in April 2025 in respect of the financial results of the fourth quarter of 2024. It intends to pay a minimum dividend in the amount of Dh1.469 billion ($400 million) in two instalments in October 2025 and April 2026 in respect of the financial results for the year ending December 31, 2025.

The company intends to pay dividends twice each calendar year, with an interim payment based on the first-half financial results being paid in October of that calendar year, and a second payment following full-year financial results being paid in April of the following calendar year, in each case with a target net income payout of 90 per cent.

“Today, we are the leading Mena partner of choice for over 65,000 restaurant and grocery businesses, satisfying the everyday needs of over six million monthly active customers, across our eight regional markets,” said Tomaso Rodriguez.

“As we look into the future, our medium-term outlook reflects multiple growth levers and favourable socio-economic conditions. With a clear growth strategy and a highly experienced team in place, we are excited to be entering this new chapter of our story, which will see us continue to proudly deliver to the region that delivers,” he said.

In 2023, Talabat’s gross merchandise value (GMV) was Dh22.3 billion, compared to Dh19 billion in 2022 and Dh14.5 billion in 2021. Its revenue amounted to Dh8 billion in 2023 compared to Dh6.3 billion in 2022, reflecting a year-on-year increase of 26.6 per cent. In the first 9 months of 2024, Talabat’s revenue amounted to Dh7.6 billion compared to Dh5.8 billion for the comparable period of 2023, an increase of 32 per cent.

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