Talabat, a Delivery Hero subsidiary, could be valued at $12.9B–$15.1B in its upcoming Dubai IPO, potentially outpacing its parent company. With strong growth and solid market positioning, the sale is run by Emirates NBD, Morgan Stanley, and JP Morgan.
Talabat is preparing for an IPO later this year in Dubai. Analysts predict it could be valued at $12.9B–$15.1B. That’s more than its parent company, Delivery Hero, which is valued at €10.4B ($11.2B). Jefferies analysts noted Talabat’s dominant market position and lower taxes as key reasons for its higher valuation, compared to rivals like Saudi Arabia's Jahez and India's Zomato. The IPO is expected to bring great visibility to Talabat’s growth in the Middle East.
Talabat’s gross merchandise value (GMV) reached $6.1B in 2023, with revenue from advertising hitting $194M. It placed third in GMV growth at 23%, behind Zomato’s 27.5% and Jahez’s 30%. However, Talabat’s strong local presence gives it an edge over competitors. Its nearest competitor, Careem, owned by Uber, is still unlisted. Uber holds 49% of Careem’s delivery business after investing $400M in it.
Three major banks—Emirates NBD, Morgan Stanley, and JP Morgan—have been selected to lead the Talabat sale. Bankers involved say the valuation is in the “right area” compared to peers like Uber and DoorDash, which trade at EV/Ebitda multiples of 19.6x and 21.5x, respectively. Investors are eager to see how Talabat performs in its IPO, and the deal could unlock significant value for Delivery Hero.
The Talabat IPO represents a key development for the UAE’s stock market. A banker involved called it "one of the first global holding companies to list here," a milestone for Dubai Financial Market (DFM). If successful, this could attract more global companies to consider the Middle East for their IPOs. It also highlights the region’s growing role in the global tech and consumer sectors.
Will Talabat’s IPO mark a shift in the UAE’s tech landscape?
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