Page 103 - AAE PR REPORT - December 2024

Talabat last month sold 4,657,648,125 shares, equivalent to 20 per cent of the company’s total
issued share capital, raising $2 billion. The total offering size was increased during the book-building
period to accommodate significant demand from international, regional and local investors.
Based on the final offer price, Talabat’s market capitalisation upon listing was Dh37.3 billion ($10.1
billion).

Redseer Strategy Consultants said Talabat serves over 6 million monthly active customers across
eight countries, addressing a population of over 71 million.

“Talabat has been a cornerstone of Mena's tech ecosystem, and its IPO represents a significant
moment in the region's technological evolution,” it said.

Vijay Valecha, chief investment officer, Century Financial, said Talabat’s IPO opened with strong
demand but ended more cautiously.

“Priced between Dh1.50 and Dh1.60 per share, the offering valued the company at $10.2 billion at
the top end. The stock opened at Dh1.70, a 6.25 per cent jump from the offer price, reflecting high
investor interest. However, it quickly dropped to Dh1.43 and closed at Dh1.49. While UAE IPOs of
state-backed companies have historically seen strong first-day gains, recent private company
debuts like Lulu, Al Ansari, and Spinneys have shown more muted movements, likely contributing to
profit-taking among investors,” said Valecha.

Despite the initial volatility, he added that Talabat’s fundamentals remain strong.

“For 2023, the company reported revenue of Dh6.16 billion (up 21 per cent from the previous year)
and net profit of Dh1.08 billion – a 40 per cent increase. At the top of the price range, the company’s
price-to-sales multiple stands at 6.04, and its P/E ratio is 34.5 based on 2023 earnings,” he added.

“Furthermore, its net profit margin of 17.53 per cent is far above the single-digit margins of its regional
peers, suggesting that the company is well-positioned for sustained growth. Considering its market
leadership, strong performance, and growth prospects, its valuation appears reasonable despite the
early stock fluctuations,” said CIO of Century of Financial.

https://www.khaleejtimes.com/business/uae-talabat-shares-drop-6-8-on-dubai-market-debut