Talabat raises 7.5 billion dirhams in the largest IPO in the UAE this year

“Delivery Hero” for delivery services raised about 7.5 billion dirhams ($2 billion) from the initial public offering of a 20% stake in the shares of its unit, Talabat Holding PLC, on the Dubai Financial Market, after setting the final price of the share at the upper end of the range, according to a statement published by it. The German company announced on Friday, making it the largest IPO in the UAE this year. The German company originally aimed to offer 15% of its unit in the Middle East, but it increased the size of the offering amid strong demand.

According to the statement, the final offering price was set at 1.60 dirhams per share, which is the upper limit of the previously announced price range, which means that the company’s market value upon listing will reach about 37.3 billion dirhams ($10.1 billion).

The total proceeds achieved from the offering amounted to 7.5 billion dirhams ($2 billion), and the huge demand from international, regional and local investors led to the subscription exceeding the target value dozens of times.

In response to the huge demand from investors, which included a number of large subscription requests from global investors in the fields of technology and long-term investments, the size of the offering was increased to reach 20% of the total issued shares in the company’s capital (previously 15% of the total issued shares in the company’s capital). .

The offering set a record as the largest initial public offering for a technology company globally in 2024, so far, and the largest initial public offering in the Gulf Cooperation Council countries for 2024, so far, and the first ever initial public offering for a company operating in the technology sector on the Dubai Financial Market.

It is expected that the shares will be accepted for trading on the Dubai Financial Market (listing) on ​​or around December 10 under the symbol “TALABAT”.

The company and the selling shareholder approved the offering size of 4.657 billion shares, equivalent to 20% of the total issued shares in the company’s capital.

It was announced on November 27, 2024, that the total size of the offering would increase during the share price construction period, to accommodate the large demand from international, regional and local investors.

The offering achieved great success, as subscription exceeded the target value dozens of times, in light of the high number of subscription requests from international investors in the fields of technology and long-term investments.

Based on the final offering price, the market value of Talabat Company upon listing will reach approximately 37.3 billion dirhams (about 10.1 billion dollars). Investors who participated in the first tranche of shares allocated to them will be notified via SMS on December 6, 2024, and the process of returning excess subscription amounts is expected to begin on the same date.