Talabat, the MENA region’s leading online delivery platform, has announced a significant proposal from its Board of Directors for a share buyback program of up to 5% of the company’s issued share capital. The initiative underscores the board’s confidence in Talabat’s long-term growth and its commitment to enhancing shareholder value.
Details of the Proposed Buyback Program
The proposed buyback, which is subject to shareholder approval, will be executed over a period of up to two years. The program will be conducted through open-market transactions on the Dubai Financial Market (DFM) and funded by the company’s existing cash resources and ongoing free cash flow generation.
This move is part of a disciplined capital allocation framework that also includes strategic investments for future growth and an ongoing dividend policy. The actual number of shares repurchased will be contingent on market conditions and share price levels.
Toon Gyssels, Chief Executive Officer of talabat, commented on the announcement, “This share buyback programme reflects our confidence in talabat’s future and our belief that the current market valuation and share price do not fully reflect the long-term strength of our platform. The buyback, combined with our dividend policy, underscores our commitment to delivering attractive total returns to shareholders while continuing to invest strategically in the growth of our food, grocery and retail categories.”
Dividends and A Confident Outlook
Alongside the buyback proposal, shareholders will vote on a final dividend of USD 219 million (3.450 fils per share) for the second half of 2025 at the Annual General Meeting scheduled for April 13, 2026. This would bring the total dividends for 2025 to USD 421 million (6.638 fils per share).
The company’s capital allocation framework prioritizes investments generating returns above its cost of capital while returning excess capital to shareholders. With a strong balance sheet and robust cash generation, the board views the share repurchase as an efficient use of capital at its current valuation.
Enhancing Trading Liquidity on the DFM
In a separate but related move, the Board has mandated management to appoint a liquidity provider for the company’s shares on the DFM. This appointment is aimed at enhancing the order book depth and improving overall trading liquidity for Talabat’s shares, making them more attractive to a wider range of investors.
About Talabat
Founded in Kuwait in 2004, Talabat is the leading on-demand delivery platform in the Middle East and North Africa (MENA). The company offers food, groceries, and other products to over six and a half million active customers across the United Arab Emirates, Kuwait, Qatar, Egypt, Bahrain, Oman, Jordan, and Iraq. Headquartered in Dubai, Talabat successfully completed its initial public offering on the Dubai Financial Market (DFM) in December 2024 and is a subsidiary of Delivery Hero SE.
Source: Zawya
