The Middle East subsidiary of Delivery Hero, Talabat, raised $2 billion from an initial public offering on Dec. 10. Talabat sold more than 4.65 billion shares at AED1.60  ($0.44) per share. The sale of a 20% stake represents a market capitalization of around $10 billion.

Berlin-based Delivery Hero decided to increase the size of the offering from 15% to 20%, citing robust demand.

Tomaso Rodriguez, CEO of Talabat, a regional food ordering and convenience retail marketplace, confirmed that the offering garnered a double-digit oversubscription. “It is clear that Talabat’s offering presented both international and local investors with a unique opportunity to gain exposure to a leading player in MENA’s technology-driven and dynamic on-demand delivery market,” he said.

Talabat’s IPO is the UAE’s largest listing for 2024. Launched in Kuwait in 2004, the company is active in five of the six Gulf Cooperation Council (GCC) countries as well as Egypt, Iraq and  Jordan. It does not operate in Saudi Arabia. Talabat, which boasts six million active customers, expects proceeds from the offering to pay down Delivery Hero’s debt, analysts say.

But Talabat’s December debut on the Dubai Financial Market was met with a subdued response, with shares sliding 7.5% on the first day of trading. This was due to its aggressive pricing, said George Pavel, general manager of trading app Naga Middle East. “The company and its underwriters priced the IPO at AED1.60, the top end of the marketed range, with a price-to-earnings ratio of 28 times—significantly higher than the Dubai Financial Market General Index’s average of nine times.”

That left no room for an upside move and likely led investors to question the valuation premium, he added.

IPOs in the GCC have raised close to $12 billion in 2024. Investors have been attracted to GCC capital markets amid a dull outlook for IPOs in markets in the US and Europe.