German food delivery giant Delivery Hero eyes IPO of Middle East unit Talabat
Nickie Louise
Posted On August 30, 2024
German online food delivery giant Delivery Hero announced it plans to spin off its Middle East business, Talabat, to list it on the Dubai stock exchange later this year.
In an announcement on Thursday, Delivery Hero confirmed it is preparing to list Talabat on the Dubai Financial Market in the fourth quarter.
The company indicated that the listing might involve a secondary sale of shares by Delivery Hero, which plans to retain a majority stake in Talabat following the IPO.
“A listing may be pursued through a secondary sale of shares by Delivery Hero which would retain the majority interest in the local listing entity after an IPO,” Delivery Hero said in a statement.
Following the news of the Talabat IPO, Delivery Hero’s shares surged nearly 10% on Thursday morning, continuing an upward trend seen earlier in the trading session amid a general rise in European stocks.
Details such as the valuation, share price target, number of shares to be listed, and a precise timeline were not disclosed, beyond the general indication of a fourth-quarter listing.
The potential IPO for Talabat is contingent on market conditions, regulatory approval, and final clearance from Delivery Hero’s management and supervisory boards.
In a call with CNBC, Delivery Hero CEO Niklas Ostberg stated that the Talabat listing is aimed at attracting local investors in the region to co-invest and support the business unit.
We covered Delivery Hero in July after the company revealed that it may face a fine from the European Commission over alleged antitrust violations. The Berlin-based company told investors that it could be fined over €400 million ($433 million) due to an investigation into anti-competitive practices.
Back in May, Uber announced it had agreed to acquire rival Delivery Hero’s Foodpanda Taiwan business for $1.25 billion. The deal would make the Silicon Valley company the dominant player in Taiwan’s food delivery market.
Over the years, Delivery Hero has acquired at least 20 companies to maintain its position as the leading food delivery platform in the world. Founded in 2011 by CJ Foo, Claude Ritter, David Bailey, Kolja Hebenstreit, Markus Fuhrmann, Nikita Fahrenholz, Niklas Ostberg, and Tracy Richardson, Delivery Hero is a network of online food ordering sites with over 100 restaurant partners, operating in 21 countries and with over 73,000 restaurant partners.
Delivery Hero
