European food delivery giant Delivery Hero has announced plans to spin off its Middle Eastern business, Talabat, with an initial public offering (IPO) on the Dubai stock exchange slated for later this year. The company revealed on Thursday that it is preparing to list Talabat on the Dubai Financial Market in the fourth quarter. Delivery Hero will retain a majority stake in the local listing entity after the IPO, though details such as valuation, share price, and the exact timeline remain undisclosed. The news sent Delivery Hero's shares soaring nearly 10% on Thursday morning.

The potential Talabat IPO underscores Delivery Hero's strategy to strengthen its presence in the Middle East, a region that has become increasingly vital to the company’s overall revenue. Talabat, which operates in countries like Saudi Arabia, UAE, and Egypt, contributed significantly to the firm's growth, with revenues in the Middle East and North Africa region surging 37% year-over-year to €874.7 million in the second quarter. CEO Niklas Ostberg highlighted that the listing aims to attract local investors to support and co-invest in the business, further solidifying Delivery Hero's base in the region.