Food delivery company Talabat Holding’s shares lost ground plunging nearly 7% in the morning session on the first day of trading today (December 10), after the company raised AED7.5 billion ($2 billion) in the Gulf's largest initial public offering this year.
However, the stock reversed course in midday trading on the Dubai Financial Market (DFM) and closed 6.8% lower at AED1.49 on Tuesday, below the final offer price of AED1.60 per share, thus adding to a slate of recent disappointing debuts for listings in the Middle East.
A leading player in the delivery of food, groceries and convenience retail, Talabat has operations in the UAE, Kuwait, Qatar, Bahrain, Egypt, Oman, Jordan and Iraq. In September, its platform had more than six million active customers.
Talabat said the IPO, through the offering of 20% of its total issued share capital, is the largest global technology IPO in 2024 as well as the largest IPO in the GCC this year. Also it is the first ever technology sector IPO on DFM.
To celebrate the listing, Tomaso Rodriguez, Chief Executive Officer of talabat, rang the DFM market-opening bell in the presence of Helal Al Marri, Chairman of the DFM Board of Directors, Hamed Ali, Chief Executive Officer of DFM and Nasdaq Dubai, and Niklas Östberg, CEO and Co-Founder of Delivery Hero.
The mega IPO had attracted a double-digit oversubscription level last month, said its top official.
"Today marks the start of an exciting new chapter for Talabat and the region’s wider tech sector, and we are delighted to be welcoming new shareholders to be a part of our ambitious road map for the future,” remarked Rodriguez.
Priced at the top of the Offer Price Range, talabat’s offering drew significant demand from local, regional and international investors.
Cornerstone investors participating in talabat’s IPO included Emirates NBD AM SPC acting on behalf of the UAE Strategic Investment Fund 5 SP, the Abu Dhabi Pension Fund, and Emirates International Investment Company LLC, reflecting confidence in talabat's future growth.
Demand also included a number of sizeable anchor orders from global long-only and technology sector investors, including several that are investing for the first time on DFM.-TradeArabia News Service
