Delivery Hero Stock: Dubai IPO Promises $1.5B Windfall

Delivery Hero, the German food delivery giant, is on the cusp of a significant milestone as it prepares to list its subsidiary Talabat on the Dubai Financial Market. The initial public offering (IPO) is expected to generate approximately $1.5 billion in proceeds, with Talabat aiming for a valuation of around $10 billion. The Berlin-based company plans to sell 15% of Talabat's shares while maintaining a majority stake. The subscription period for 3.49 billion shares is set to commence on Tuesday when the price range is announced, with trading slated to begin on December 10th.

Strategic Expansion and Market Positioning

Talabat has solidified its market position in eight countries across the Middle East and North Africa through strategic acquisitions, including Zomato's food delivery service in the UAE and the online grocery platform InstaShop. This IPO is poised to be one of the largest in the region this year, reflecting Delivery Hero's commitment to expanding its footprint in these markets. Despite a recent 2.93% dip in Delivery Hero's stock price, analysts remain optimistic. Jefferies reaffirmed its buy recommendation with a target price of €44.50, suggesting significant upside potential from the current €36.47 share price. The company intends to use the IPO proceeds to optimize its capital structure, potentially enhancing its financial flexibility for future growth initiatives.