Chart: MENA's public tech companies
A chart highlighting MENA's public (and soon-to-be public) tech companies by market cap
Good afternoon,
Earlier this week, Talabat announced that it has set its share price at AED 1.6, the top end of its previously announced range. Just before that, it also announced that it was increasing the size of its offering from 15 percent of the company’s total shares to 20 percent.
The company raised $2.04 billion (AED 7.5 billion) by selling 4.66 billion shares, in a “double-digit” oversubscribed offering.
This makes it the largest global tech IPO of the year and one of the top ten IPOs overall. It’s also the biggest IPO of the year in the region.
Earlier this month, Lulu Retail, a UAE grocery chain, raised $1.72 billion in an IPO, valuing the company at $5.74 billion.
Talabat’s share price implies a $10.16 billion market cap at the listing. The company expects to start trading on December 10.
Here’s a quick chart on this.
A little more on the companies in it: The breakdown currently looks like this:
UAE HQ: Talabat, Yalla Group, Swvl, Anghami
Saudi HQ: Jahez, Rasan, (and Nice One in the next few weeks)
Egypt HQ: Fawry
From these eight, when Talabat and Nice One list, five will be locally listed, and three on US stock exchanges.
Here’s a breakdown by year:
2019: Fawry
2020: Yalla Group
2022: Jahez, Swvl, Anghami
2024: Rasan, Talabat
2025: Nice One (and hopefully a few more)
Back to Talabat. And putting its valuation into perspective.
It accounts for over 66 percent of the total market cap of public tech companies in MENA. Talabat’s market cap is double that of all other tech companies combined.
Delivery Hero, which owns Talabat and will retain 80 percent after the IPO, has a market cap of $12.16 billion. By spinning off (and floating 20 percent of) Talabat, it’s essentially creating another company of similar size that could potentially surpass it.
With this market cap, it would rank among the top 8 companies (with a chance of breaking into the top 5 if it does well on the debut) on the Dubai Financial Market, and top 25 in UAE overall.
In a previous Termsheet issue, I explained that Talabat’s market cap implies a trailing P/E of 28x (based on annualized 2024 9M earnings). Jahez is trading at a trailing P/E of about 51x, with its share price up 31 percent in the last month. At Jahez's P/E, Talabat would have a market cap of $18.26 billion.
That’s it for today.
See you soon,
Zubair