UAE: Talabat IPO subscription opens on November 19; nominal value at Dh0.04 per share
The offer price will be released on November 29 and the listing for the shares will be available from December 10 on the Dubai Financial Market.
Our primary focus, Talabat, a Q-commerce application and food delivery app said that according to its parent delivery hero Mena holding over 3.493 billion (3,493,236,093) ordinary shares will be offered for the public through initial public Dh0.04 each.
The company will distribute fifteen percent shares and as per the prospectus, the company was also able to adjust the size of the two tranche over ian and bond before the end of the subscription period.
The subscription for the IPO will open on 19 November and will be available until 27th November for the first tranche and till 28th November for the second tranche. The fen offer price shall be notified on November 19 or prior to commencement of the offer period.
The offer price shall be announced on November 29 and thereafter the shares shall be listed on the Dubai financial market on the 10th of December.Following the offer, the paid up capital of the company would be Dh 931.52 million (931,529,625).
Talabat has become the most recent company in the UAE to go public this year. Lately, the retail firm Lulu sold for Dh6.32 billion after selling a 30% stake that was 25 times subscribed because of favourable indicators and expansion outlooks for retail firms in the Gulf region’s expanding population. It is set to trade on the Abu Dhabi Securities Exchange from November 14.
In relation to the first tranche, the retail offer consists of 5% of the offer share which exceeds 174.661 million (174,661,805) shares with Talabat having set aside for the retail investors. Each subscriber other than eligible employees will have a minimum of guaranteed 1000 shares while each eligible employee is expected to receive a minimum guaranteed allocation of 10000 shares.
The minimum subscription amount for the first tranche has been fixed at five thousand Dirham (Dh5,000) with any further subscription made up of increments of one thousand Dirham (Dh1,000).
The second tranche is intended for institutional investors and accounts for 95% of the offer through over three billion three hundred eighteen million five hundred seventy four thousand two hundred eighty-eight (3,318574288) shares offered by the second tranches.
The second tranche minimum subscription level has been pegged at five million Dirham (Dh5 million). The maximum subscription limit has been set by the company.
The joint lead managers are Emirates NBD Capital, Abu Dhabi Commercial Bank, EFG Hermes UAE, and First Abu Dhabi Bank.
Lead receiving banks include Emirates NBD Bank, Emirates Islamic Bank, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mashreq, Mbank, and WIO Bank.
The board of the Talabat comprises six directors where Pieter - Jan Vandepitte is the chairman while Andrees Krause serves as the vice chairman. Marie-Anne Popp serves as a non-executive director, Tomaso Rodriguez is the executive director, Abdullah Alharoun is an independent non-executive director and Muhammad Hussain Ghati Al Jbori is an independent non-executive director.
Dividend policy
The company plans to declare a minimum dividend of Dh367.25 million ($100 million) in respect of the financial results of the fourth quarter of 2024, which is due in April 2025. It further plans to declare a minimum dividend of Dh1.469 billion ($400 million) in two equal portions in October 2025 and April 2026 in relation to the financial results for the year ending 31st December 2025.
The dividends are to be paid on a biannual basis. The first payment concerning half-year earnings is due in October of each calendar year. The second concerns fourth quarter earnings, and is scheduled for April of the next calendar year. The payout ratio of net income is targeted at 90% in these payments.
Rodriguez Tomaso said, “At this time we are the most sought after partner of over 65000 restaurants and groceries in the mena region and are able to cater to the day to day needs of more than six million active customers every month through our cross eight countries”.
"The medium term prospects offer various growth levers that are complemented by the favourable socio-economic factors. With a clear growth strategy, and a highly experienced team in place, we are ready for the next chapter of the story that will see us provided with the necessary tools needed to deliver for the region that delivers,” he commented. “
"In 2023, Talabat’s gross merchandise value was Dh22.3 billion when it was Dh19 billion in 2022 and Dh14.5 billion in 2021. Its revenue was Dh8 billion in 2023 as compared to Dh6.3 billion in 2022 which represents an increase by 26.6 per cent from the previous year. For the 9-month period, the year till date of October 2024, Talabat earned Dh7.6 billion while in the comparable period in 2023 it realised Dh5.8 billion representing an increase of 32%."
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