Delivery Hero prepares IPO of Talabat on Dubai stock exchange

German food-ordering giant Delivery Hero is preparing an initial public offering of its Emirati subsidiary Talabat on the Dubai stock exchange in the fourth quarter of this year.

Delivery Hero may pursue a listing by selling a portion of its shares through a secondary offering while retaining a majority stake in the local entity following the IPO, according to a statement from the company.

The company operates in the UAE and other countries in the Middle East and North Africa with its food delivery and quick commerce business under the Talabat brand.

Delivery Hero also announced its second quarter and half-year financial results, showing that its drive for profitable growth across its global footprint continues to pay off.

In the first half of 2024, Delivery Hero achieved adjusted earnings before interest, taxes, depreciation, and amortization of €240 million ($266.28 million), marking an increase of €231 million from the first half of 2023.

The firm also reached a break-even position in free cash flow, with an anticipation of generating additional headroom in this area in the second half of 2024.

“We delivered another strong quarter of growth and improved profitability, which is a testament to our relentless focus on customer experience, operational efficiency, and category leadership,” Niklas Ostberg, CEO and co-founder of Delivery Hero, said.

He added: “We ended the quarter on a high note and expect further growth and a significant increase in profitability in H2 2024.”

Marie-Anne Popp, interim CFO of Delivery Hero, said: “We have met our goal to deliver strong financial results in line with our 2024 guidance.”

The company reported a 7 percent rise in gross merchandise value for the full quarter, primarily driven by an increase inorder volume.

In the MENA region, the group’s platform business demonstrated impressive top-line growth with a 28 percent year-over-year increase in gross merchandise volume .

This strong performance was driven by continuous enhancements to the ecosystem and improvements in customer experience.

In Europe, order volume grew by double digits, resulting in exceptional GMV growth of 19 percent year-over-year in the second quarter, outperforming other European peers.