(Bloomberg) — Delivery Hero SE’s Middle East unit had demand for all shares in its $1.5 billion Dubai initial public offering minutes after subscriptions opened, in the latest sign of robust demand for regional deals.
Most Read from Bloomberg
Books for Talabat’s IPO were covered throughout the price range of 1.50 dirhams ($0.41) to 1.60 dirhams, according to the terms of the deal seen by Bloomberg News. Its parent firm is offering a 15% stake, or 3.49 billion shares.
The top end implies a valuation of $10.2 billion for Talabat, slightly lower than Delivery Hero’s $11 billion market capitalization.
The UAE Strategic Investment Fund, Abu Dhabi Pension Fund and Emirates International Investment Co. will subscribe to shares worth $250 million as cornerstone investors, Talabat said in a statement Tuesday. The final offer price will be announced Nov. 29 and shares are set to start trading on Dec. 10.
The deal comes amid a flurry of listings in the Middle East, where firms have raised about $10 billion from new share sales in 2024. Still, some recent large deals have had lackluster debuts.
Hypermarket chain Lulu Retail raised $1.7 billion in an Abu Dhabi offering last month soon after a $2 billion IPO from a unit of Oman’s state energy company. Both firms had muted debuts, with the Omani firm closing 8% below its offer price.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
