Delivery Hero shares pop 10% as European food delivery giant plans IPO of Middle East unit
Delivery Hero CEO Niklas Ostberg said the IPO of its Middle East business was about bringing in local investors in the region to co-invest and support the unit.
European food delivery firm Delivery Hero says it plans to spin off its Middle East business Talabat and float it on the Dubai stock exchange later this year.
In a brief statement Thursday, Delivery Hero said that it is "preparing a listing of its Talabat business on the Dubai Financial Market" in the fourth quarter.
"A listing may be pursued through a secondary sale of shares by Delivery Hero which would retain the majority interest in the local listing entity after an IPO," Delivery Hero said in a statement.
Shares of Delivery Hero jumped nearly 10% Thursday on the back of the Talabat IPO news as of 7:30 a.m. ET, extending gains from earlier in the session amid a broader uptick in European shares.
The company did not disclose a valuation, share price target, volume of shares that it will list, or a specific timeline beyond the fourth-quarter indication.
The potential Talabat IPO remains subject to market conditions, approval of a prospectus by securities regulators and clearance from Delivery Hero's management and supervisory boards.
Speaking on a call with CNBC following the news, Delivery Hero CEO Niklas Ostberg said that the proposed Talabat market listing was about bringing in local investors in the region to co-invest and support the unit.
"We have been looking into those opportunities to bring in stronger support," Ostberg told CNBC Thursdsay. "The Middle East is a very large part of our business and ... there is clear value for us to further build a strong base there."
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