BATAMHEADLINE – Talabat, a leading on-demand food ordering, delivery, takeaway, and groceries marketplace in the Middle East and North Africa (MENA) region, was founded in 2004 by a group of Kuwaiti entrepreneurs.
The company was established to streamline the food ordering process by moving it online, which was a significant innovation at the time. The founders, Abdulaziz Al Loughani and Khaled Al Otaibi, saw the inefficiencies in traditional food ordering methods and aimed to create a more efficient and user-friendly solution.
Over the years, Talabat has grown to become a dominant player in the MENA region, expanding its operations to several countries including Kuwait, Saudi Arabia, Bahrain, the United Arab Emirates, Oman, Qatar, Jordan, Egypt, and Iraq.
The company’s success can be attributed to its pioneering logistics and service technology stack, which has enhanced the ordering, delivery, and takeaway experience for its users. In 2015, Talabat was acquired by Delivery Hero, a global online food ordering and delivery marketplace, further solidifying its position in the market.
Now, The company plans to offer 15% of its total issued shares to the public, aiming to raise substantial capital to fuel its growth and expansion. With a Gross Merchandise Value (GMV) of AED 19.8 billion and a proposed dividend of AED 367 million for Q4 2024, Talabat is poised to attract investors looking for robust financial performance and a strong market presence.
Based on the information available, Talabat’s IPO has the potential to be bullish in the near term. Here are some reasons why:
- Strong Financial Performance: Talabat has shown impressive financial results, with a Gross Merchandise Value (GMV) of AED 19.8 billion and a proposed dividend of AED 367 million for Q4 2024. This strong financial performance can attract investors.
- Market Leadership: Talabat is the leading on-demand food ordering, delivery, takeaway, and groceries marketplace in the MENA region, with over 6 million active customers and more than 65,000 partners. This market leadership position can drive investor confidence.
- Valuation: The IPO is expected to value Talabat between $9 billion and $12 billion, potentially raising over $1 billion. This valuation reflects the company’s strong position and growth potential.
- Dividend Policy: Talabat plans to pay a minimum dividend of approximately $100 million in April 2025 and $400 million in two installments in October 2025 and April 2026. This attractive dividend policy can draw investors looking for regular income.
- Technological Innovation: Talabat is known for its pioneering logistics and service technology stack, which enhances the ordering, delivery, and takeaway experience. This technological edge can further boost investor interest.
Given these factors, Talabat’s stock price has the potential to rise in the near term. However, it’s important to note that stock prices can be influenced by various external factors, including market conditions and investor sentiment. Investors should conduct their own research and consider consulting with financial advisors before making any investment decisions.
