Delivery Hero's Talabat to launch over $1 bln #Dubai IPO next week, sources say | Reuters

Delivery Hero's Talabat to launch over $1 bln Dubai IPO next week, sources say | Reuters

Talabat, the Middle East business of Delivery Hero (DHER.DE), opens new tab, plans to launch its Dubai initial public offering next week, three people familiar with the plans told Reuters, in one of the UAE's biggest IPOs this year.

The deal, set by the German parent for the fourth quarter, could start as soon as Monday, two of the sources said. It could see the largest food ordering business in the Middle East sell stock worth more than $1 billion, according to two of them.

Dubai-based Talabat and Delivery Hero declined to comment.

The IPO rides a retail spending boom in the Gulf and comes amid a frenzy of public listings in the region as governments push to cut their dependence on oil.

Hypermarket chain operator Lulu Retail raised $1.72 billion on Wednesday.

Founded in 2004 in Kuwait, Talabat has since expanded to serve customers in the United Arab Emirates (UAE), Oman, Qatar, Bahrain, Jordan, Iraq and Egypt, with over six million active customers as of the end of July, according to company data.

Besides food, it provides deliveries of groceries and other goods including health and beauty products.

Germany's Delivery Hero bought a majority stake in Talabat in 2015. The Berlin-based online takeaway food company said in August it planned to retain a majority stake, with analysts flagging the deal could help cut its debt.

Its Frankfurt-listed shares have fallen over 74% from their January 2021 highs fuelled by pandemic demand.

The IPO "represents a highly positive catalyst for the equity (of Delivery Hero)," said Jefferies analyst Giles Thorne in a video note earlier this week, citing "very low execution risk" and a material de-leverage of the balance sheet.

Talabat is "one of the highest, if not the highest quality on demand delivery platforms globally," he said, valuing the company at 11.5-13.5 billion euros.

Regional rivals include Saudi Arabia's Jahez (9526.SE), opens new tab as well as Uber Technologies-owned (UBER.N), opens new tab Careem.

Delivery Hero chief executive Niklas Östberg did not comment when asked about the IPO in an interview with Reuters on Thursday, when the company reported third-quarter earnings.

Its gross merchandise value (GMV), measuring the total value of all goods sold, rose 30% in the Middle East and North Africa (MENA) region, its fastest growing geography, where it also operates through units Hungerstation, Yemeksepeti and InstaShop.

It accounted for over a quarter of the group's overall GMV in the period.

Lower oil prices drag #UAE markets down | Reuters

Lower oil prices drag UAE markets down | Reuters

Stock markets in the United Arab Emirates closed lower on Friday, driven by a drop in oil prices on subsiding risks of the significant impact of hurricane Rafael on U.S. oil and gas output.

Hurricane Rafael, which has caused 391,214 barrels per day of U.S. crude oil production to be shut, is expected to move slowly westward over the Gulf of Mexico and away from U.S. fields while forecast to weaken from Friday and through the weekend, the U.S. National Hurricane Center said.

Oil prices — an engine of growth for Gulf's economies — was down 1.61% at $74.41 a barrel as of 1100 GMT.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab slipped 0.2%, after three session of gains, dragged down by a 0.6% decrease in International Holding Company (IHC.AD), opens new tab and a 1.4% decline in IHC-owned conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab.

Other losers included Sharjah-based energy firm Dana Gas (DANA.AD), opens new tab. It fell 1.3% after the firm recorded a 7% decline in its third-quarter net profit to $40 million.

However, State oil giant Abu Dhabi National Oil Company's gas unit, ADNOC Gas (ADNOCGAS.AD), opens new tab, jumped 1.5% ahead of releasing third-quarter earnings later in the day.

Dubai's main index (.DFMGI), opens new tab snapped three sessions of gains, with the index settling 0.1% down.

Among the losers, Dubai lenders Mashreqbank (MASB.DU), opens new tab and Commercial Bank of Dubai (CBD.DU), opens new tab dropped 2% and 4%, respectively.

Meanwhile, the UAE central bank cut its base rate applied to the overnight deposit facility by 25 basis points on Thursday, from 4.90% to 4.65%, effective Nov. 8.

The Abu Dhabi index recorded 1.1% weekly growth, while the Dubai index extended gains to fifth week, with a 0.4% rise, according to LSEG data.