Wednesday, December 4, 2024

Talabat IPO On Track To Be Year’s Largest Tech Listing

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(Bloomberg) — Delivery Hero SE priced its Middle Eastern unit’s initial public offering at the top of its range, putting the deal on pace to be the largest tech sector IPO of the year.

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The German company set the final price in the Talabat Holding IPO at AED 1.60 ($0.44) per share, according to a statement.

Delivery Hero will raise close to AED 7.5 billion ($2 billion) with Talabat’s listing, by selling 20% of the company’s shares. This will make it the largest tech listing globally year-to-date, according to data compiled by Bloomberg.

It’s also on track to be the year’s largest initial share sale in the Middle East, the data show.

It’s the latest in a slew of initial share sales in the Middle East, which have raised close to $11 billion so far this year. Governments in the region are attempting to diversify away from oil, and new arrivals to hubs like Dubai are helping shore up consumer businesses.

The IPO price implies a valuation of around $10.2 billion for Talabat, slightly below Delivery Hero’s $11.5 billion market capitalization.

Delivery Hero increased the amount of shares on offer from 15% earlier this week, citing sizeable anchor orders from global long-only and technology investors. Talabat’s shares are expected to start trading in Dubai on Dec. 10.

Earlier this year, hypermarket chain Lulu Retail raised $1.7 billion in an Abu Dhabi offering, shortly after an IPO from a unit of Oman’s state energy company.

Talabat operates across eight countries – United Arab Emirates, Kuwait, Oman, Qatar, Egypt, Jordan, Iraq and Bahrain. It has cemented its position in the region helped by Delivery Hero’s acquisition of Indian firm Zomato’s food delivery business in the UAE in 2019 and online grocery platform InstaShop in 2020.

Emirates NBD Capital PSC, JPMorgan Securities and Morgan Stanley have been appointed as joint global coordinators and joint bookrunners on the Talabat offering. Abu Dhabi Commercial Bank, Barclays, EFG-Hermes, First Abu Dhabi Bank, Goldman Sachs, ING Bank and UniCredit are joint bookrunners.

(Updates with details on deal)

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