Dubai IPO: Delivery Hero (DHER) Eyes About $1.5 Billion From Talabat Listing - Bloomberg
Delivery Hero SE is considering seeking about $1.5 billion from the initial public offering of its Middle Eastern unit in Dubai, according to people familiar with the matter.
The German food delivery firm is eying a valuation of about $10 billion for Talabat, the people said, declining to be identified as the information is confidential. It plans to sell a 15% stake in the business, retaining a majority interest.
No final decisions have been made on the size. Representatives for Talabat and Delivery Hero declined to comment.
The firm is set to announce a price range for the offer Tuesday, and the shares are expected to begin trading on the Dubai Financial Market Dec. 10.
The deal is set to be one of the largest listings of the year in the Middle East, where firms have raised about $10 billion from new share sales in 2024. But while the region continues to be a hotspot for IPOs, some recent large deals have had lackluster debuts.
Hypermarket chain Lulu Retail raised $1.7 billion in an Abu Dhabi offering last month soon after a $2 billion IPO from a unit of Oman’s state energy company. Both firms had muted debuts, with the Omani firm closing 8% below its offer price.
Still, Talabat’s margins and higher growth prospects support a valuation premium, according to Bloomberg Intelligence’s Tatiana Lisitsina, who called it the “crown jewel” of the Delivery Hero portfolio in a report last month.
The firm plans to pay at least $100 million in dividends in April relative to fourth quarter financial results, plus $400 million in two installments in October 2025 and April 2026. After that, dividends are expected to be paid twice each calendar year, with Talabat targeting a net income payout of 90%.
Talabat operates across eight countries - United Arab Emirates, Kuwait, Oman, Qatar, Egypt, Jordan, Iraq and Bahrain. It has cemented its position in the region helped by Delivery Hero’s acquisition of Indian firm Zomato’s food delivery business in the UAE in 2019 and online grocery platform InstaShop in 2020.
The deal comes days after Swiggy Ltd.’s $1.3 billion share sale in India, which valued the company at just over $12 billion. The food-delivery firm’s shares closed 17% higher on debut.
Emirates NBD Capital PSC, JPMorgan Securities and Morgan Stanley have been appointed as joint global coordinators and joint bookrunners on the offering. Abu Dhabi Commercial Bank, Barclays, EFG-Hermes, First Abu Dhabi Bank, Goldman Sachs, ING Bank and UniCredit are joint bookrunners.
Monday, 18 November 2024
Most Gulf bourses fall on Fed's rate-cut caution; Egypt extends loss | Reuters
Most Gulf bourses fall on Fed's rate-cut caution; Egypt extends loss | Reuters
Most stock markets in the Gulf ended lower on Monday, hurt by concerns that the U.S. Federal Reserve would slow its pace of interest-rate cuts, while the Qatar and Saudi indices rose amid higher oil prices.
Investors increased bets on the Fed leaving interest rates unchanged at its December meeting and dialed back expectations for easing in 2025.
The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.6%, weighed down by losses in utilities, consumer staples and industry sectors.
Gulf Navigation Holding, or GULFNAV, (GNAV.DU), opens new tab dropped 7% to 5.29 dirhams per share, its lowest in nearly 1-1/2 years. The maritime and shipping firm posted an 84% decrease in quarterly net profit on Friday.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab snapped two sessions of gains, falling 0.6% in its biggest daily loss in over a month. Conglomerate International Holding (IHC.AD), opens new tab and its unit Alpha Dhabi (ALPHADHABI.AD), opens new tab slipped 1.6% and 2%, respectively.
However, Lulu Retail (LULU.AD), opens new tab gained 1%, the stock's first session of gains since it debuted trading on Thursday.
The Middle East's biggest hypermarket chains operator, Lulu, raised $1.72 billion in its initial public offering, the UAE's largest listing so far this year.
The Qatari benchmark index (.QSI), opens new tab rose 0.4%, aided by a 1.7% gain in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 1.1% increase in Barwa Real Estate (BRES.QA), opens new tab.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.2%, with Saudi Aramco (2222.SE), opens new tab gaining 0.5%. The oil major said it and Sinopec Corp have started constructing a refinery and petrochemical complex in southeast China's Fujian province.
Among other gainers, Banan Real Estate surged 7.7% after the Exchange approved its transfer to the main market.
Meanwhile, Saudi Arabia's crude oil exports in September rose to their highest level in three months.
Oil prices, a catalyst for the Gulf's financial markets, settled higher, with Brent rising 0.5% to $71.37 a barrel by 1310 GMT.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab extended declines to a second straight session and fell 1.2%, with most stocks in the red.
Investors increased bets on the Fed leaving interest rates unchanged at its December meeting and dialed back expectations for easing in 2025.
The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.6%, weighed down by losses in utilities, consumer staples and industry sectors.
Gulf Navigation Holding, or GULFNAV, (GNAV.DU), opens new tab dropped 7% to 5.29 dirhams per share, its lowest in nearly 1-1/2 years. The maritime and shipping firm posted an 84% decrease in quarterly net profit on Friday.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab snapped two sessions of gains, falling 0.6% in its biggest daily loss in over a month. Conglomerate International Holding (IHC.AD), opens new tab and its unit Alpha Dhabi (ALPHADHABI.AD), opens new tab slipped 1.6% and 2%, respectively.
However, Lulu Retail (LULU.AD), opens new tab gained 1%, the stock's first session of gains since it debuted trading on Thursday.
The Middle East's biggest hypermarket chains operator, Lulu, raised $1.72 billion in its initial public offering, the UAE's largest listing so far this year.
The Qatari benchmark index (.QSI), opens new tab rose 0.4%, aided by a 1.7% gain in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 1.1% increase in Barwa Real Estate (BRES.QA), opens new tab.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.2%, with Saudi Aramco (2222.SE), opens new tab gaining 0.5%. The oil major said it and Sinopec Corp have started constructing a refinery and petrochemical complex in southeast China's Fujian province.
Among other gainers, Banan Real Estate surged 7.7% after the Exchange approved its transfer to the main market.
Meanwhile, Saudi Arabia's crude oil exports in September rose to their highest level in three months.
Oil prices, a catalyst for the Gulf's financial markets, settled higher, with Brent rising 0.5% to $71.37 a barrel by 1310 GMT.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab extended declines to a second straight session and fell 1.2%, with most stocks in the red.
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