Talabat Holding plc, an on-demand online food ordering and delivery service in the MENA region, today announced the price range for the sale of its shares and the start of the subscription period for its initial public offering on the Dubai Financial Market.
Offer price
The offer price range has been set between AED1.50 and AED1.60 per share, implying a market capitalization at time of listing of between AED34.93 billion ($9.51 billion) and AED37.26 billion ($10.15 billion).
A total of 3,493,236,093 shares will be available in the IPO, representing 15 percent of the company’s total issued share capital.
All shares to be offered are existing shares held by the company’s sole shareholder, Delivery Hero MENA Holding GmbH, a wholly-owned subsidiary of Delivery Hero SE, a public company listed on the Frankfurt Stock Exchange.
Cornerstone investors
Emirates NBD AM SPC acting on behalf of the UAE Strategic Investment Fund 5 SP, Abu Dhabi Pension Fund, and Emirates International Investment Company LLC will be cornerstone investors in the IPO with a total commitment of approximately AED918 million.
Subscription period and listing
The IPO subscription period starts today and closes on November 27, 2024 for UAE retail investors and on November 28, 2024 for professional investors. The final offer price is likely to be announced on November 29, 2024. Admission of the shares for trading on DFM is likely to take place on or around December 10, 2024.
“We are delighted to open subscriptions today for the talabat IPO on DFM having seen strong local and international investor interest since announcing our intention to float. talabat was founded in the Middle East in 2004 and today we have over 65,000 restaurants and grocery businesses across our eight MENA countries and over six million active customers using our platform,” said Tomaso Rodriguez, CEO of talabat.
“Our well-defined growth strategy is focused on enhancing our product offering and increasing our market penetration, investing in our innovative FinTech and loyalty programmes, scaling our advertising offerings and exploring adjacent categories, which we believe presents an exciting opportunity for investors. With the region also experiencing favourable socioeconomic conditions with a large and growing addressable market, we look forward to welcoming new shareholders to join us on our journey,” he added.
Subscription tranches
The offering will comprise a public offering (retail offering) to UAE retail investors and other investors in the UAE, including eligible employees of talabat (referred to as the first tranche), and an offering to professional investors, referred to as qualified investors offering or the second tranche.
Each successful subscriber in the first tranche other than eligible employees will be guaranteed a minimum allocation of 1,000 shares, and each eligible employee will be guaranteed a minimum allocation of 10,000 shares (the ‘minimum guaranteed allocation’).
Participating banks
Emirates NBD Capital PSC has been appointed as listing advisor, whereas Emirates NBD Capital PSC, J.P. Morgan Securities PLC, and Morgan Stanley & Co International PLC have been appointed as joint global coordinators and joint bookrunners.
Abu Dhabi Commercial Bank PJSC, Barclays Bank PLC, EFG-Hermes UAE Limited (acting in conjunction with EFG Hermes UAE LLC), First Abu Dhabi Bank PJSC, Goldman Sachs Bank Europe SE, ING Bank N.V., and UniCredit Bank GmbH have been appointed as joint bookrunners.
Emirates NBD Bank PJSC has been appointed as the lead receiving bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank LLC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, First Abu Dhabi Bank PJSC, Mashreq Bank PSC and Wio Bank PJSC have also been appointed as receiving banks.
