Talabat, Dubai's popular food delivery service, announced expansion plans beyond a go-to app for residents. Its parent company, Delivery Hero SE, announced on Thursday that it plans to list Talabat on the Dubai Financial Market (DFM) by the fourth quarter of 2024.
"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," the German food delivery giant said in a statement. This move depends on the market conditions and the necessary regulatory approvals.
The news was well-received by investors, leading to a significant surge in Delivery Hero's shares, which climbed as much as 9 percent in Frankfurt. This increase is especially noteworthy given that the company’s shares had previously plummeted by around 85 percent from their January 2021 peak, a drop attributed to waning interest in food delivery stocks following the pandemic-driven boom.
Marie-Anne Popp, Delivery Hero's interim finance chief, expressed optimism about the listing, "We think it's a good time for us to be having regional investors participate in this business."
However, she did not disclose how the company plans to utilize the proceeds from the IPO.
Inputs from Reuters.