Talabat to raise $1.5bn from Dubai listing

Talabat is planning to raise $1.5 billion in an initial public offering (IPO) in Dubai, according to reports.

This week, Bloomberg reported that the food delivery firm is in talks with banks about a potential listing this year, citing people familiar with the matter.

Talabat, which is owned by Delivery Hero, has reportedly picked Goldman Sachs Group Inc., First Abu Dhabi Bank PJSC and Morgan Stanley to manage the sale. No final decision has been made, and details of the IPO, including the size and timing, could change, the report said.

However, if successful, the IPO would be one of the biggest in Dubai this year. It would also give Talabat a higher profile in the region and provide it with access to new sources of capital.

Talabat is one of the leading food delivery companies in the Middle East and North Africa (MENA) region. It operates in 11 countries including the United Arab Emirates (UAE), Saudi Arabia, Egypt, Jordan, Kuwait, Oman, Qatar, Bahrain, Lebanon, Iraq and Morocco.

The company has grown rapidly in recent years, driven by the increasing popularity of online food delivery. In 2021, Talabat reported a gross merchandise value (GMV) of $1.4 billion, up 48% year-on-year.

Talabat's growth has attracted the attention of investors. In 2020, Delivery Hero acquired the company for $1.1 billion. Delivery Hero is one of the world's largest food delivery companies, with operations in over 50 countries.

The IPO would be a major milestone for Talabat. It would give the company access to new sources of capital and help it to expand its operations in the MENA region and beyond.