Delivery Hero is set to launch an initial public offering (IPO) for its Emirati subsidiary Talabat on the Dubai Financial Market in the fourth quarter of 2024. This strategic move aims to enhance local investment in the rapidly growing food delivery sector within the Middle East and North Africa (MENA) region. Following the announcement, Delivery Hero’s shares surged by 7% in early Frankfurt trading, reflecting investor optimism about the IPO.

The planned IPO will involve a secondary sale of existing shares, allowing Delivery Hero to maintain a majority stake in Talabat post-listing. Although specific details regarding share pricing and valuation have not been disclosed, analysts estimate that Talabat could be valued between $12.9 billion and $15.1 billion. This valuation positions Talabat favorably against regional competitors, highlighting its strong market presence.

In the second quarter, Delivery Hero reported a remarkable 31% increase in sales within the MENA region, significantly outpacing growth in other markets. Talabat’s gross merchandise value reached €5 billion last year, underscoring its importance in the company’s overall operations. The firm operates across several countries, including Bahrain, Egypt, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

CEO Niklas Ostberg emphasized that the IPO is designed to attract regional investors to bolster Talabat’s growth trajectory. He noted that the Middle East represents a crucial segment of Delivery Hero’s business strategy. As the company prepares for this significant milestone, it remains open to exploring additional strategic opportunities that align with its growth objectives.

This IPO marks a pivotal moment for both Delivery Hero and the MENA food delivery market, potentially setting a precedent for future listings in the region as investor interest continues to rise.