Delivery Hero Stock: Talabat IPO Boosts Middle East Presence

Delivery Hero has achieved a significant milestone with the successful Initial Public Offering (IPO) of its Middle Eastern subsidiary Talabat on the Dubai Financial Market. The shares made an impressive debut, surging 7.5% above the initial offering price of 1.60 Dirham, resulting in a market capitalization of approximately 10.3 billion euros. The Berlin-based company capitalized on strong investor interest, expanding its initial offering from 15% to 20% of Talabat's shares, generating proceeds of nearly two billion euros. This strategic move highlights Delivery Hero's commitment to maximizing shareholder value while maintaining a controlling stake in its profitable Middle Eastern operations.

Regional Growth Performance

Talabat's impressive performance in the MENA region underscores the strategic importance of this IPO. The company reported a gross merchandise value of 5.4 billion US dollars in the first nine months of 2024, marking a 21% year-over-year growth. With over six million monthly active customers, partnerships with 65,000 vendors, and a network of 119,000 active drivers, Talabat has established itself as a dominant force in the regional food delivery market, demonstrating robust operational metrics despite challenging market conditions.