German food delivery specialist Delivery Hero is planning to sell 15% of its Middle East subsidiary by listing it in Dubai. The deal is still awaiting final regulatory sign off, but could raise around $1 billion for the company, according to some estimates.
Called Talabat, the UAE business is considered by some analysts as the crown jewel of the Delivery Hero empire. Brokers in the region will start accepting orders from 19 November, with plans to close book building currently scheduled for 27 November.
Talabat has said it will pay investors a minimum dividend of $100m in April, along with further dividends of $400m in two instalments in October 2025 and April 2026.
The timing of the listing looks good as IPOs in the Gulf region have been running red hot this year. Oman managed to get its state energy company onto the market at a punch $2bn and investor enthusiasm for new listings is prompting other private companies to consider taking advantage of this climate.
Talabat reported $6bn in gross merchandise volumes in 2023, which was a big increase on the $4bn sold in 2022. Free cash flow has increased 64% year on year to $226m in the six months which ended in June.
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Kioxia returns to Japan IPO discussions – yet again
Kioxia Holdings Corp is planning to IPO in Tokyo at some point next year, possibly even as early as December, according to sources in Japan. Kioxia specialises in the manufacture of NAND flash memory hardware, but has been struggling to get its stock onto the market.
The actual price and size of the listing is still vague, but analysts in Japan say the company needs the cash the listing would raise in order to remain competitive in the chip market. Kioxia first tried to list in October 2020. Since then it has been losing its technological edge to close competitors like Samsung and SK Hynix.
Kioxia has also suffered from a sustained downturn in the price of NAND memory hardware and is seen as being a very focused play in this area. It has been engaged in merger discussions with Western Digital Corp for some time now and has posted six straight quarters of operating losses.
The company was looking seriously at an October IPO which would have made it one of the biggest in Japan this year, but has since stepped away from it. Big shareholders include private equity firm Bain Capital, which controls 56% and Toshiba, which has 41%.
Groupe Dynamite could be Canada’s biggest IPO of 2024
Canadian women’s clothing retailer Groupe Dynamite looks like it will IPO shortly, according to sources close to the deal. Several Canadian institutions and at least one US bank are believed to be working on the offering, which could come to the market in December.
The Canadian market is in urgent need of a scale IPO deal of this nature. The IPO would value the company in excess of C$1 billion making it the standout IPO deal for the year.
Based in Montreal, Groupe Dynamite has over 300 stores in the US and Canada. It controls clothing brands like Dynamite and Garage and is seen as being well-positioned to benefit from the growth in both online retail clothing sales and an expanding network of stores in the US.
Groupe Dynamite opened stores in Portland and San Antonio in June and three further stores in the US in May. The company typically targets high end fashion retail space in city centre malls, close to other big brand names (e.g. Apple).
Given the time scale of the deal, surprisingly little information is currently circulating on the details.
So far the biggest listing to hit the Canadian market in 2024 has been Mercer Park Opportunities Corp, a SPAC which raised C$315m in June.
