Delivery Hero SE’s Middle East unit, Talabat, saw overwhelming demand for its $1.5 billion Dubai IPO, with subscriptions covering all shares within minutes of opening. The IPO price range is set between 1.50 dirhams ($0.41) and 1.60 dirhams, valuing Talabat at up to $10.2 billion. While this is slightly below Delivery Hero’s $11 billion market capitalization, it also falls short of earlier estimates, including Emirates NBD’s valuation of up to $14.4 billion. The IPO involves the sale of a 15% stake, or 3.49 billion shares, and analysts suggest the pricing strategy could be aimed at boosting post-IPO performance and revising market perceptions of Delivery Hero’s overall value.

Despite some skepticism over the valuation range, Talabat’s IPO arrives at a critical time for regional markets, following tepid performances from recent Gulf IPOs like Lulu Retail and an Omani energy unit. These companies struggled to gain momentum, with Lulu ending flat and the Omani firm closing 8% below its offer price. Investors are now watching closely as Talabat prepares to announce its final offer price on November 29, with trading set to begin on December 10.