BERLIN, GERMANY – SEPTEMBER 04: The Delivery Hero office photographed on September 04, 2020 in Berlin, Germany. (Photo by Jeremy Moeller/Getty Images)
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Delivery Hero, the European food delivery giant, has announced its intention to spin off its Middle Eastern business, Talabat, and list it on the Dubai Financial Market later this year. The company revealed that the listing is expected to take place in the fourth quarter and may involve a secondary sale of shares, with Delivery Hero maintaining a majority stake in the newly listed entity.
The company has not yet provided details on the valuation, share price, or the number of shares to be offered. The potential IPO will depend on market conditions and requires approval from securities regulators, as well as clearance from Delivery Hero’s management and supervisory boards.
In a statement to CNBC, Delivery Hero CEO Niklas Ostberg explained that the decision to pursue a local listing for Talabat is aimed at attracting regional investors to support and co-invest in the business. Ostberg highlighted the Middle East as a significant and rapidly growing part of Delivery Hero’s operations.
Talabat operates in several countries across the Middle East, including Bahrain, Egypt, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The region is a major contributor to Delivery Hero’s overall revenues and has been identified as a key area for future growth.
Ostberg did not provide specifics on any additional strategic actions, such as the sale of other assets or further IPOs, but noted that the company is always open to opportunities that create value, both financially and strategically.