• Talabat, owned by Germany’s Delivery Hero, plans a major IPO in Dubai next week, potentially raising over USD 1 billion, making it one of the largest in the UAE this year.
• The IPO aligns with a surge in Gulf retail spending and public listings as governments aim to reduce oil dependency; Talabat has over six million active users across the region.
• Delivery Hero, which acquired Talabat in 2015, expects the IPO to help reduce its debt and strengthen its financial position, with analysts viewing Talabat as one of the top global on-demand delivery platforms.

Talabat, a subsidiary of Delivery Hero, is preparing for a major initial public offering (IPO) in Dubai next week.

According to sources familiar with the plan, this IPO could be one of the largest in the UAE this year. The IPO, expected to kick off, may see Talabat. The company is the leading food ordering platform in the region, raise over USD 1 billion.

Riding the Gulf’s Retail Boom

Furthermore, the IPO comes as the Gulf experiences a surge in retail spending. It is amid a wave of public listings. The regional governments work to reduce their reliance on oil revenue.

This trend has also benefited other major retailers in the area. Lulu Retail, which raised USD 1.72 billion in its own IPO recently.

Founded in Kuwait in 2004, Talabat has grown significantly. It is now serving millions across the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt. In addition to food, Talabat delivers groceries, health products, and beauty items.

Delivery Hero’s Strategy and Market Context

Furthermore, Delivery Hero acquired a majority stake in Talabat in 2015. Analysts believe this move will help Delivery Hero reduce its debt. The company has been a concern amid a 74% drop in its Frankfurt-listed shares in January 2021, according to Reuters.

Jefferies analyst Giles Thorne highlighted the IPO as a positive development for Delivery Hero. It is suggesting it carries low execution risk.

Also, Talabat is one of the world’s top-quality on-demand delivery platforms. Its value is between 11.5 and 13.5 billion euros. It also competes with Saudi Arabia’s Jahez and Uber’s Careem.