📈 Delivery Hero’s Stock Surge
Delivery Hero’s shares surged by nearly 10% on Thursday after the company announced plans to list its Middle Eastern business, Talabat, on the Dubai Financial Market in Q4 2024. This surge reflects investor optimism, as Talabat is a crucial part of Delivery Hero's portfolio, contributing to 28% of the company’s revenue in Q2 2024.
🏙️ Talabat’s Strong Market Presence
Talabat is a significant player in the Middle East, operating in countries like the UAE, Saudi Arabia, and Egypt. The region is the second-largest revenue source for Delivery Hero, with Talabat generating €874.7M ($950.6M) in Q2 2024, up 37% year-over-year. The IPO aims to bring in local investors and strengthen the company’s regional presence.
📊 IPO Details Still Uncertain
While the IPO plans are in motion, specifics like the valuation, share price target, and volume remain undisclosed. Delivery Hero mentioned that the listing is subject to market conditions and regulatory approvals. Despite the uncertainty, the market responded positively to the potential IPO.
🗣️ CEO’s Vision for Growth
CEO Niklas Ostberg emphasized the importance of local support in the Middle East for Talabat’s growth. He stated, “We see clear value in building a strong base there.” Ostberg also hinted that Delivery Hero is open to other value-enhancing opportunities, though he did not comment on specifics.
Is the Talabat IPO a smart move for Delivery Hero?
