Delivery Hero Stock: Talabat IPO Sparks Market Optimism

Delivery Hero, the MDAX-listed food delivery service, is set to make a significant move in the Middle East market. The company plans to list its subsidiary Talabat on the Dubai Stock Exchange, offering a 15% minority stake. This initial public offering (IPO) is scheduled for December 10, with the subscription period running from November 19 to 27. The transaction could potentially yield around $1 billion for Delivery Hero, with experts valuing Talabat at up to $12 billion, including debt.

Attractive Dividend Policy Boosts Investor Interest

The announcement of Talabat's IPO has led to a positive market reaction, with Delivery Hero's stock price surging 5.55% at the start of Monday's trading. Talabat's proposed dividend strategy has further piqued investor interest. The company plans to distribute a minimum dividend of approximately $100 million for Q4 2024, followed by around $400 million for the fiscal year 2025. Subsequently, Talabat aims to implement bi-annual dividend payments, targeting a 90% payout ratio of net profit. This move is viewed favorably by market observers, who see it as a catalyst for Delivery Hero's overall valuation.