Talabat, the online food delivery platform, has officially launched its initial public offering (IPO) on the Dubai Financial Market (DFM), with the subscription period opening today. This marks a significant milestone for the company, which has garnered considerable interest from both local and international investors.
The price range for the IPO has been set between Dh1.50 and Dh1.60 per share, with the total offering size estimated to range from Dh5.24 billion (approximately US$1.43 billion) to Dh5.59 billion (approximately US$1.52 billion). This valuation places Talabat's market capitalisation at the time of listing between Dh34.93 billion (approximately US$9.51 billion) and Dh37.26 billion (approximately US$10.15 billion). A total of 3,493,236,093 shares, representing 15 percent of the company’s issued share capital, will be made available. The shares are being sold by an existing shareholder, who retains the right to amend the offering size subject to regulatory approval and market conditions.
The subscription period for UAE retail investors will run from November 19 to November 27, 2024, while professional investors will have until November 28, 2024, to participate. The final offer price is expected to be announced on November 29, 2024, with Talabat’s listing and trading on the DFM projected to commence on or around December 10, 2024, subject to regulatory approvals.
Talabat’s CEO, Tomaso Rodriguez, expressed optimism about the IPO’s prospects, highlighting the strong interest it has received from investors. He said, “We are delighted to open subscriptions today for the Talabat IPO on Dubai Financial Market, having seen strong local and international investor interest since announcing our intention to float".
Emirates NBD Capital PSC has been appointed as the listing advisor, with J.P. Morgan Securities PLC and Morgan Stanley & Co International PLC serving as joint global coordinators and bookrunners. Additional joint bookrunners include Abu Dhabi Commercial Bank PJSC, Barclays Bank PLC, EFG-Hermes UAE Limited, First Abu Dhabi Bank PJSC, Goldman Sachs Bank Europe SE, ING Bank N.V. and UniCredit Bank GmbH. Retail investors will be supported by Emirates NBD Bank PJSC as the lead receiving bank, alongside several other regional banks including Abu Dhabi Commercial Bank PJSC, Dubai Islamic Bank PJSC and Mashreq Bank PSC.
The IPO has been deemed compliant with Shariah principles by the Internal Shariah Supervision Committee of Emirates NBD Bank PJSC. However, potential investors are encouraged to conduct their own due diligence to confirm compliance with their individual requirements.
With subscriptions now open, Talabat’s IPO is set to be a major event in Dubai’s financial market, offering investors a chance to be part of the growth story of one of the region’s most recognized digital platforms. The final outcome of the offering and the market response will be closely watched as the company prepares for its expected listing in December.