On December 10, 2024, Talabat Holding PLC, a leading food delivery service in the Middle East, commenced trading on the Dubai Financial Market (DFM). This initial public offering (IPO) is notable not only for its scale but also for its potential to reshape the UAE’s technology sector.
Background of Talabat
Founded in 2004 in Kuwait, Talabat has expanded its services across the Middle East, including the UAE, Oman, Qatar, Bahrain, Jordan, Iraq, and Egypt. As of September 2024, the company reported over six million active customers, underscoring its significant market presence.
Details of the IPO
Talabat’s IPO was priced at AED 1.60 per share, placing its market capitalization at approximately AED 37.3 billion ($10.1 billion). The offering raised about AED 7.5 billion, with Delivery Hero, Talabat’s parent company, retaining a majority stake post-IPO.
Market Reception
Upon listing, Talabat’s shares experienced a 7.5% increase, reaching AED 1.70 per share. In the initial minutes of trading, over 228 million shares were exchanged, valued at approximately AED 388 million.
Implications for the UAE’s Tech Sector
This IPO is the largest in the UAE for 2024 and reflects the country’s growing prominence in the global tech market. The success of Talabat’s listing is expected to attract further investments and encourage other tech companies to consider public offerings.
Conclusion
Talabat’s IPO marks a significant milestone in the UAE’s economic development, highlighting the nation’s commitment to fostering a dynamic and diverse economy. As the company continues to expand its services and market reach, it is poised to play a pivotal role in shaping the future of the Middle East’s tech industry.
