Talabat Holding, one of the biggest food ordering businesses in the Middle East, is set to raise about $2 billion (€1.9 billion) from the largest initial public offering in the UAE this year, after its parent Delivery Hero priced the offering at the top end of the indicated range.
Talabat said the IPO was priced at 1.60 dirhams ($0.4357) per share for gross proceeds of about $2 billion (€1.9 billion), implying a market capitalisation of around $10.1 billion (€9.6 billion).
Germany's Delivery Hero on Wednesday (27 November) increased the offer size to a 20% stake from 15%, citing significant demand from both international and regional investors.
Dubai-based Talabat said the offer was oversubscribed by a double-digit factor.
"We are confident that our growth strategy focused on enhancing our product offering and increasing our market penetration...will power the next phase of talabat's success," CEO Tomaso Rodriguez said.
Gulf Listings
The IPO on the Dubai Financial Market (DFM), one of a flurry of listings in the Gulf, follows the float of a 30% stake in Lulu Retail Holdings in Abu Dhabi this month which raised $1.72 billion (€1.6 billion).
Talabat shares are expected to begin trading on 10 December.
Founded in 2004 in Kuwait, Talabat has expanded to the UAE, Oman, Qatar, Bahrain, Jordan, Iraq and Egypt. It had more than six million active customers as of September.
Delivery Hero first entered the Middle East in 2015 when it bought Talabat from German e-commerce group Rocket Internet, which had acquired it for about €150 million ($158.52 million) earlier that year.
"Delivery Hero intends to retain a long-term majority indirect ownership position in Talabat," the parent said.
