Shares of food delivery company Talabat Holding plc surged over seven percent shortly after its listing on the Dubai Financial Market (DFM) on Tuesday.
In the initial minutes of trading, Talabat’s shares increased by 7.5 percent to reach AED1.70 each. During this time, 228.37 million shares were traded, amounting to a total value of AED388.25 million.
DFM today celebrated the successful listing of talabat, which will trade under the ticker symbol “TALABAT,” Dubai Media Office reported.
Delivery Hero SE (Delivery Hero), the selling shareholder and a publicly traded entity on the Frankfurt Stock Exchange, will continue to hold a majority stake in talabat.
talabat’s significant initial public offering (IPO) generated gross proceeds of approximately AED7.5 billion (around USD2.0 billion) by offering 20 percent of the Company’s total issued share capital. This marks the largest technology IPO globally in 2024, the biggest IPO in the GCC this year, and the first-ever technology sector IPO on DFM.
Investor demand and participation
The offering, priced at the upper end of the Offer Price Range (AED1.60 per share), attracted considerable interest from local, regional, and international investors. Notable cornerstone investors in talabat’s IPO included Emirates NBD AM SPC on behalf of the UAE Strategic Investment Fund 5 SP, the Abu Dhabi Pension Fund, and Emirates International Investment Company LLC, showcasing confidence in talabat’s future growth prospects. Additionally, there were substantial anchor orders from global long-only and technology sector investors, many of whom were investing on DFM for the first time.
Read more: Talabat prices IPO at top of range, raising $2 billion in proceeds
Significance of the listing
Talabat’s listing is the third successful debut on DFM in 2024, reinforcing Dubai’s status as an emerging global capital market hub and highlighting DFM’s vibrant and appealing ecosystem. To commemorate the occasion, Tomaso Rodriguez, chief executive officer of talabat, rang the DFM market-opening bell, joined by His Excellency Helal Al Marri, chairman of the DFM Board of Directors, Hamed Ali, chief executive officer of DFM and Nasdaq Dubai, and Niklas Östberg, chief executive officer and co-founder of Delivery Hero.
His Excellency Helal Al Marri stated that the successful listing of talabat on DFM emphasizes Dubai’s role as a dynamic global financial center. He also noted that this event underscores the strong regulatory framework and infrastructure supporting Dubai’s financial ecosystem, guided by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Deputy Prime Minister and Minister of Finance. He mentioned that at DFM, they are dedicated to attracting leading private-sector firms to list, thereby diversifying investment opportunities for both regional and international investors, enhancing DFM’s varied sector offerings, and paving the way for more consumer, technology, and retail companies to utilize their platform for growth and capital raising.
Commitment to market strength
Hamed Ali remarked that they are pleased to welcome talabat to its home market, and that this landmark IPO illustrates the strength of Dubai’s capital markets and the unparalleled confidence investors have in the UAE. He further stated that this milestone is a testament to their unwavering commitment to delivering innovative market solutions, broadening investment opportunities, and improving market transparency, positioning DFM as the premier listing venue in the region for private sector companies.
Additionally, Tomaso Rodriguez expressed that ringing the bell at DFM today on behalf of the entire talabat team represents the culmination of a two-decade journey of transformation characterized by ambition, innovation, and a dedication to serving the region. He mentioned that they are proud of their local roots and thrilled with the enthusiasm and demand their IPO has generated both locally and globally. He also stated that today marks the beginning of an exciting new chapter for talabat and the wider tech sector in the region, and they are excited to welcome new shareholders to their ambitious roadmap for the future.
Currently, talabat operates across eight markets: the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq. As of September 2024, the Company’s on-demand platform boasted over six million active customers, more than 65,000 active restaurants and grocery vendors, and over 119,000 active riders.
Strategic growth initiatives
Talabat’s growth strategy revolves around five key pillars: enhancing its product offerings and market penetration, scaling advertising initiatives, investing in Customer Loyalty Programs and FinTech, expanding into adjacent product categories, and pursuing targeted investments, acquisitions, and strategic partnerships.
The listing of talabat strengthens Dubai’s impressive IPO pipeline, with total funds raised on DFM in 2024 reaching AED10.48 billion, while the market has ranked as the best-performing regional market for the second consecutive year. This momentum supports the UAE’s broader economic diversification strategy.
