Delivery Hero Stock: Dubai IPO Plans Boost Growth Prospects

Delivery Hero, the MDAX-listed food delivery giant, is set to launch an initial public offering (IPO) for its subsidiary Talabat on the Dubai Stock Exchange. The company aims to float 15% of Talabat's shares, with full listing expected by mid-December. This strategic move comes as Delivery Hero reports a staggering 192% revenue growth in the third quarter of 2024, reaching €3.234 billion. The proceeds from the IPO will be utilized for general corporate purposes and capital structure optimization, while Delivery Hero maintains its majority stake in Talabat.

Dividend Strategy and Market Outlook

Following the IPO, Talabat plans to implement an aggressive dividend policy, starting with a minimum payout of $100 million in April 2025 for Q4 2024, followed by a $400 million minimum for the fiscal year 2025. The company aims to distribute 90% of its net profit bi-annually thereafter. Despite operational challenges, Delivery Hero's stock shows resilience, currently trading at €37.15, up 59.82% from its 52-week low. Analysts remain optimistic, with Bernstein Research maintaining an "Outperform" rating and a €59 target price, signaling potential upside for investors.