Delivery Hero Stock: Talabat IPO Values Unit at $10.2B

Delivery Hero has achieved a significant milestone with the Initial Public Offering (IPO) of its Middle Eastern subsidiary Talabat on the Dubai Stock Exchange. The company has set the share price at 1.60 UAE dirhams (€0.41) per share and increased the offering size to 20 percent of Talabat's shares, resulting in gross proceeds of approximately €1.9 billion. This pricing values Talabat at an impressive $10.2 billion, nearly matching the market capitalization of its parent company. The shares are scheduled to commence trading on December 10th in Dubai, with Delivery Hero maintaining majority control of the subsidiary.

Ambitious Dividend Strategy

The newly listed company has outlined an aggressive dividend distribution plan for shareholders. Talabat commits to distributing a minimum of $100 million in dividends for the fourth quarter of 2023, with payments scheduled for April 2024. The company plans to substantially increase this distribution to at least $400 million by fiscal year 2025, targeting a payout ratio of approximately 90 percent of net profits. As the majority stakeholder, Delivery Hero stands to benefit significantly from this generous dividend policy.