Talabat Holding plc, the leading on-demand food delivery and convenience retail marketplace in the MENA region, completed its highly anticipated initial public offering (IPO) on the Dubai Financial Market (DFM). Initially met with overwhelming international and regional investor demand, the offering size was increased by nearly 33% during the book-building period. However, despite the strong debut, Talabat’s shares closed down by 6.87% on their first trading day.
A Historic Offering for the Region
Talabat’s IPO, which concluded on 28 November 2024, marked one of the most significant listings on the DFM this year. The offering size was increased to 4.66 billion shares, representing 20% of the company’s total issued share capital, up from the originally planned 15%. This adjustment was made to cater to strong demand from global long-only and technology investors, many of whom were investing on the DFM for the first time.
With a price range set at AED 1.50 to AED 1.60 per share, Talabat raised between AED 7.0 billion ($1.9 billion) and AED 7.5 billion ($2.0 billion), making it one of the largest IPOs of the year. Based on the final offer price, the company’s market capitalisation at the time of listing stood at AED 37.3 billion ($10.1 billion).
Redseer Strategy Consultants noted that Talabat serves over six million active monthly customers across eight countries, addressing a population of more than 71 million. “Talabat has been a cornerstone of MENA’s tech ecosystem, and its IPO represents a significant moment in the region’s technological evolution,” the consultancy stated.
Market Debut and Initial Performance
Talabat’s shares opened trading on 10 December 2024 at AED 1.70, reflecting a 6.25% jump from the IPO price. However, after a day of volatile trading, the stock closed at AED 1.49, down 6.87% from the opening price. According to Khaleej Times, the counter saw over 737 million shares traded, generating AED 1.18 billion across 18,519 transactions, making it the most active stock of the day.
The broader Dubai Financial Market index also ended lower, declining 1.11% to close at 4,794.11 points. Analysts attribute the dip in Talabat’s stock to profit-taking by investors following strong early gains.
Investor Sentiment and Analyst Insights
Speaking with Khaleej Times, Vijay Valecha, Chief Investment Officer at Century Financial, highlighted the strong initial demand for Talabat’s IPO, noting that it reflected high investor interest. “However, like other private company IPOs this year, such as Lulu, Al Ansari, and Spinneys, Talabat’s listing saw more muted movements compared to state-backed companies,” he said.
Valecha further emphasised Talabat’s robust fundamentals. In 2023, the company recorded AED 6.16 billion in revenue, a 21% increase year-on-year, and a net profit of AED 1.08 billion, up by 40%. With a net profit margin of 17.53%, significantly higher than its regional peers, Talabat remains well-positioned for sustained growth despite early stock fluctuations.
“At the top of its IPO price range, the company’s valuation metrics, including a price-to-sales multiple of 6.04 and a P/E ratio of 34.5, suggest that Talabat is reasonably valued given its market leadership and growth potential,” Valecha told the newspaper.
A Pivotal Year for UAE IPOs
Talabat’s IPO caps a year of significant activity on UAE stock markets, with the company becoming the last major listing in 2024. The IPO underlines the region’s growing appeal to international investors and its ability to host large-scale private and public offerings.
As Talabat continues to consolidate its leadership in the MENA region’s on-demand delivery sector, its IPO is seen as a milestone in the broader development of the UAE’s tech ecosystem. While the market debut was marked by some volatility, the company’s strong fundamentals and growth trajectory signal long-term promise for investors and stakeholders alike.
