(Bloomberg) — Delivery Hero SE set the price for its Middle Eastern unit’s initial public offering at the top of its range, putting the deal on pace to be the United Arab Emirates’ biggest listing of the year.
Most Read from Bloomberg
The German company set the final price in the Talabat Holding IPO at AED 1.60 ($0.44) per share, according to a statement.
Delivery Hero will raise close to AED 7.5 billion ($2 billion) with Talabat’s listing, by selling 20% of the company’s shares.
This price implies a valuation of around $10.2 billion for the Middle Eastern business, slightly below Delivery Hero’s $11.5 billion market capitalization. Delivery Hero increased the amount of shares on offer from 15% earlier this week.
Talabat’s shares are expected to start trading in Dubai on Dec. 10.
It’s the latest in a slew of initial share sales in the Middle East, which have raised close to $11 billion so far this year. Hypermarket chain Lulu Retail raised $1.7 billion in an Abu Dhabi offering last month, shortly after a $2 billion IPO from a unit of Oman’s state energy company.
Talabat operates across eight countries – United Arab Emirates, Kuwait, Oman, Qatar, Egypt, Jordan, Iraq and Bahrain. It has cemented its position in the region helped by Delivery Hero’s acquisition of Indian firm Zomato’s food delivery business in the UAE in 2019 and online grocery platform InstaShop in 2020.
Emirates NBD Capital PSC, JPMorgan Securities and Morgan Stanley have been appointed as joint global coordinators and joint bookrunners on the Talabat offering. Abu Dhabi Commercial Bank, Barclays, EFG-Hermes, First Abu Dhabi Bank, Goldman Sachs, ING Bank and UniCredit are joint bookrunners.
(Updates with added details)
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
