Delivery Hero Stock: Dubai IPO Sparks Investor Enthusiasm

Delivery Hero's announcement of concrete plans for the initial public offering (IPO) of its subsidiary Talabat in Dubai has ignited significant investor interest. The food delivery giant intends to float a 15% minority stake in Talabat, with trading expected to commence on December 10. This strategic move, potentially generating around $1 billion for Delivery Hero, aims to enhance the company's capital structure while maintaining majority ownership and consolidation of Talabat. The IPO's announcement triggered a notable 8.4% surge in Delivery Hero's stock price, propelling it to the top of the MDax.

Attractive Dividend Policy Fuels Optimism

Talabat's commitment to a generous dividend strategy has further bolstered investor confidence. The company plans to initiate dividend payments with a minimum of $100 million in April 2025, followed by approximately $400 million for the 2025 fiscal year. Moving forward, Talabat aims to distribute semi-annual dividends targeting a 90% payout ratio of net profits. This robust dividend policy, coupled with Talabat's strong performance in the Middle East and North Africa region, where it achieved a gross merchandise value exceeding €5 billion last year, is viewed as a positive catalyst for Delivery Hero's overall valuation.