Delivery Hero lines up banks for Talabat’s Dubai listing
It plans to list the unit in the fourth quarter, following a pickup in Gulf IPOs
DELIVERY Hero has hired banks to work on the listing of its Talabat unit in Dubai, preparing to cash in on a flood of initial public offerings (IPOs) in the Gulf.
The German food delivery company has lined up Emirates NBD, Morgan Stanley and JPMorgan Chase for the deal, people familiar with the matter said, asking not to be named discussing confidential information.
The share sale could raise about US$1 billion, they said.
No final decisions have been made on valuation, and more banks could be added, the sources added. Representatives for Emirates NBD, Morgan Stanley, JPMorgan, Delivery Hero and Talabat declined to comment.
Delivery Hero has said it is planning to list Talabat on Dubai’s bourse in the fourth quarter. That came amid a pickup in Gulf IPOs after a quiet summer.
Last week saw a flurry of announcements from companies ranging from a perfume maker and flour miller to an oil services provider and a food delivery company. Many of the deals were oversubscribed within hours.
Talabat is estimated to have an enterprise value of more than 5.4 billion euros (S$7.8 billion), indicated Bloomberg Intelligence.
RBC Capital Markets, meanwhile, pegs Delivery Hero’s Middle East and North Africa business at five billion euros, implying a valuation of 1.3 times enterprise value-to-sales.
The highly profitable Middle Eastern unit could help Delivery Hero unlock cash upfront and bolster liquidity, but “long-term reduced ownership means leaking the vital cash flow to Talabat’s new shareholders”, Bloomberg Intelligence analysts Tatiana Lisitsina and Diana Gomes said. BLOOMBERG
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