The planned IPO of the Middle East subsidiary Talabat in Dubai will bring billions into Delivery Hero's coffers.

The food delivery company allocated the shares at the upper end of the offer range on Friday, paving the way for the biggest stock market debut of the year in the United Arab Emirates. The initial listing is scheduled for December 10.

Interested parties will receive a total of 4.66 billion Talabat shares at a price of the equivalent of EUR 0.41 each. This results in an issue volume of around 1.9 billion euros. All shares on offer are from Delivery Hero. Due to the high demand, the parent company is putting 20 percent of Talabat shares on the market instead of the originally planned 15 percent. Delivery Hero emphasized that it intends to retain a majority stake in the fast-growing Middle East subsidiary in the long term.

At the issue price, Talabat is valued at the equivalent of 9.55 billion euros. Analysts had valued the company at up to 12.5 billion euros. The food supplier is aiming to increase the gross merchandise volume (GMV) traded via the platform by almost a quarter in 2024. It also held out the prospect of dividend payments in the triple-digit millions.

(Report by Hakan Ersen, edited by Ralf Banser. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)