Delivery Hero's Shares Rise After Revealing Talabat IPO Plans on Dubai Financial Market

Delivery Hero (DHER.DE) is gearing up for an initial public offering (IPO) of its profitable Emirati subsidiary, Talabat, on the Dubai Financial Market, the German food delivery company announced, leading to a rise in its shares on Thursday (August 29th).

Following the announcement, Delivery Hero's shares initially surged by 7% but later moderated to a 3% increase by 0839 GMT. The company's stock has seen a significant decline, dropping approximately 85% since its peak in January 2021, as investors have turned away from food delivery stocks post-pandemic.

Interim finance chief Marie-Anne Popp commented that the IPO presents a strategic opportunity to involve regional investors in Talabat’s business, though she did not disclose specific plans for the IPO proceeds.

Analysts from Barclays suggested that the Berlin-based company might use the funds raised to reduce its 4 billion euro ($4.4 billion) debt. The IPO, scheduled for the fourth quarter, will involve selling existing shares in Talabat while Delivery Hero maintains a majority stake in its fastest-growing unit.

Source: Andrey Sychev / Reuters