Delivery Hero Stock: Talabat IPO Signals Major Middle East Expansion

Delivery Hero has achieved a significant milestone with the successful IPO of its Middle Eastern subsidiary Talabat, securing a substantial gross proceeds of approximately €1.9 billion. The offering price was set at 1.60 dirham (€0.41) per share, reaching the upper end of the targeted price range. This strategic move has positioned the IPO as one of the most significant in the Middle East, with 20% of Talabat's shares being sold due to strong investor demand. The company's total valuation has reached an impressive $10.2 billion, marking a crucial development for the Berlin-based food delivery giant's market presence in the region.

Attractive Dividend Strategy Unveiled

Adding to the IPO's appeal, Talabat has announced an ambitious dividend policy that includes plans to distribute at least $100 million to shareholders for Q4 2023, with payments scheduled for April 2024. The company aims to significantly increase this figure to a minimum of $400 million for the 2025 fiscal year, targeting a distribution of 90% of net profits to shareholders. Trading is set to commence on the Dubai Stock Exchange on December 10, 2023, with Delivery Hero maintaining majority control of the subsidiary.