Delivery Hero is hoping for a billion-euro windfall from the planned IPO of its Middle East subsidiary Talabat.

The German food delivery company is offering its shares at the equivalent of EUR 0.37 to 0.41 per share. A total of 3.49 billion Delivery Hero shares are to be sold, which could raise up to 1.43 billion euros for the parent company. The money is to be used "for general corporate purposes and to optimize the capital structure".

According to further information, interested parties have from November 19 to 28 to subscribe for Talabat shares. The issue price is expected to be announced on November 29. The debut on the Dubai Stock Exchange is planned for December 10.

An allocation at the upper end of the price range would value Talabat at a total of around 8.6 billion euros. However, analysts had valued the fast-growing company at up to 12.5 billion euros. The food supplier is aiming to increase the gross merchandise volume (GMV) traded via the platform by almost a quarter in 2024. It also held out the prospect of dividend payments in the three-digit million range.

(Report by Hakan Ersen, edited by Sabine Ehrhardt. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)