TLDR:
• Talabat’s IPO aims for $1bln+ launch
• Dubai’s IPO frenzy gains traction
• Delivery Hero plans stake retention
DUBAI (The Thursday Times) — Talabat, the Middle Eastern powerhouse in on-demand delivery, is gearing up for a significant IPO on the Dubai Financial Market, aiming to raise over $1 billion. This high-profile listing, planned by parent company Delivery Hero, positions Talabat among the region’s most valuable tech brands as it capitalizes on the Gulf’s retail surge and heightened investor interest in diversified market opportunities. With operations across eight MENA countries, Talabat’s expansion reflects an intensified demand for fast delivery services beyond food, including groceries and essential goods.
After rapid regional expansion since its founding in 2004, Talabat is now setting its sights on one of Dubai’s largest public offerings this year. Sources indicate the IPO could be announced as soon as next Monday, with an expected valuation range between $9 billion and $12 billion. Delivery Hero, Talabat’s German parent, acquired a majority stake in the company in 2015 and has since steered it to become the region’s dominant delivery brand, competing with the likes of Careem. This IPO aligns with Delivery Hero’s strategic move to reduce debt while retaining its majority stake in Talabat.
Talabat has benefitted from surging demand across the Gulf, especially in the UAE, Qatar, and Saudi Arabia. This year, it reported a remarkable third-quarter profit growth of 46 percent, driven by logistics improvements and increased service fees. As the Gulf’s appetite for digital retail and delivery services grows, Talabat’s gross transaction volume climbed by 23 percent, hitting nearly $2 billion. With the Gulf nations making up a substantial portion of Talabat’s business, the IPO aims to leverage the MENA region’s increasing focus on digital services and reduced reliance on oil revenues.
Expansion, competition, and profit surge
Regional rivals, including Careem and Saudi Arabia’s Jahez, have also tapped into the booming delivery market, yet Talabat maintains a leading edge with its broader service offerings. The company’s profitability continues to climb as it integrates diverse delivery categories, enhancing its value proposition for IPO investors. With its operational scale across MENA and high-value growth metrics, Talabat’s public offering could redefine market standards in Dubai and beyond, highlighting the Gulf’s shift toward diversified economies and tech-driven service industries.
