Delivery Hero, the Germany-based food delivery platform, plans to list 15 per cent of its UAE subsidiary Talabat on the Dubai bourse in the fourth quarter, as it looks to capitalise on the listing boom in the Emirates.
A total of 3,493,236,093 shares, each with a nominal value of Dh0.04, will be made available in the offering, on-demand food and quick-commerce company Talabat said in its prospectus on Monday.
The subscription period will open on November 19 and end on November 27 for UAE retail investors, including eligible employees of Talabat, and on November 28 for institutional investors. The retail tranche will be 5 per cent of the total shares on offer, with the remaining allocation reserved for qualified institutional investors.
The offer price will be determined through a book building process during the subscription period, the company said. The company expects to start trading on the Dubai Financial Market on or around December 10.
Talabat, which offers delivery of food, groceries and convenience retail, has operations in the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan, and Iraq. For the month of September, its platform had more than six million active customers, more than 65,000 active restaurants, other groceries and retail vendors, as well as about 119,000 active riders.
The IPO was announced in August and the public float remains subject to market conditions.
Frankfurt-listed Delivery Hero is selling its existing shares in Talabat and has received the board’s approval to pursue the initial public offering, it said in a statement on its website on Sunday. “Delivery Hero may amend the size of the offering subject to required approvals of the Securities and Commodities Authority of the UAE,” it added.
The Berlin-based parent will retain majority interest in Talabat and, “subject to a lock-up of 180 days following listing, be represented with half of the directors on the board of Talabat”, the company added.
The proceeds of the IPO, depending on the number and price of Talabat shares eventually sold in the public float, will be used by Delivery Hero for “general corporate purposes and to further optimise its capital structure”.
Post-listing, Talabat plans to pay a minimum dividend of about $100 million in April 2025 for the fourth quarter of 2024. It will pay $400 million in two instalments in October 2025 and April 2026 for the financial results of 2025, the company said.
“Talabat intends to pay dividends twice each calendar year, in each case with a target net income payout of 90 per cent,” it added.
Since its launch in 2004 in Kuwait, Talabat has transformed into a home-grown technology-driven food, groceries and retail delivery business.
"Everybody loves the fact that this company has been growing very fast and at the same time also being profitable and after 20 years ... we're growing 21 per cent on a year-over-year basis," chief executive Tomaso Rodriguez told The National on Monday.
The company expects to grow by as much as 23 per cent this year and its growth outlook for next year is about 18 per cent. Over the medium term, Talabat aims to maintain growth of 14 per cent to 15 per cent.
"We are very underpenetrated in the markets we're in, so we have today six million active customers and the addressable population in the markets we operate in is around 71 million customers," Mr Rodriguez said. "If you look at [customer] acquisitions, over the last five years, we've been growing at 19 per cent."
Talabat joins a growing list of companies seeking to list share on equity markets in the UAE amid continued economic momentum in the Arab world’s second-largest economy.
Its intention to list follows UAE retail major Lulu Group's successful IPO to raise Dh6.32 billion ($1.72 billion), the country's largest listing so far this year. The hypermarket chain operator priced its shares at the top of the indicated range amid strong investor demand for listings in the region this month.
The retailer sold 30 per cent of its total share capital in its Abu Dhabi listing in a deal oversubscribed by more than 25 times across all tranches and received aggregate demand of more than Dh135 billion from domestic, regional and international investors.
A string of other deals this year in the UAE includes ADNH Catering, a unit of Abu Dhabi National Hotels, raising Dh864 million through the sale of a 40 per cent stake. NMDC Energy, a unit of Abu Dhabi contractor National Marine Dredging Company, also began trading on the ADX in September after raising $877 million, while Alef Education raised $515 million from its IPO in Abu Dhabi in June.
IPO activity in the Middle East remained strong in the third quarter of this year, with five IPOs raising $930 million, according to EY. The proceeds are 76.8 per cent higher on a year-on-year basis.
An additional 11 private companies across various sectors, as well as five funds, intend to list on the regional exchanges by the end of this year, according to EY's Mena IPO Eye Q3 2024 report.
The DFM, over the past few years, has also featured substantial listing activity.
Retailer Spinney's was the last to list shares on the DFM, in April. Parking operator Parkin's IPO in March was the first in the UAE capital markets this year, which raised Dh1.57 billion from investors. Demand for the deal hit a record Dh259 billion.
Companies in Dubai raised Dh34.5 billion through selling shares in the past three years, with aggregate investor demand for those listings reaching more than Dh1 trillion, the Dubai Securities and Exchange Higher Committee said in March.
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The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
The five pillars of Islam
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
UAE currency: the story behind the money in your pockets
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
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The years Ramadan fell in May
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'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
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Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
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UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
Zayed Sustainability Prize
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
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if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
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