Talabat’s parent company, Delivery Hero, a German online food delivery service, raised $1.5 billion from a convertible bond offering, marking the company’s third equity-linked issuance in less than two years.
According to reports, the company sold $891 million in 2026 bonds and $594 million in 2029 securities. The company said that the fund will be used for general corporate objectives as well as to take advantage of any favorable investment possibilities that may arise.
Companies have rushed into the equity-linked market this year, eager to secure low financing from investors before interest rates climb further, raising a record of $16 billion across Europe, the Middle East, and Africa. This year, Delivery Hero’s portfolio is one of the most comprehensive in Europe.
The Berlin-headquartered company made public listings in January and July of last year, raising more than $3.5 billion in total across the two series funding rounds. Even when the lockdowns were lifted, the company is investing in acquisitions and plans to expand as clients continue to order food and grocery deliveries.
After orders reached a new peak in the second quarter of 2021, Delivery Hero raised its full-year guidance for product sales on its platform last month. It also said that it has purchased a 5.1 percent interest in UK-based Deliveroo.
The 2026 notes will have a 1 percent annual coupon, while the 2029 notes will have a 2.125 percent coupon. Both are being offered with a 40 percent conversion premium. The sale was headed by Morgan Stanley, JPMorgan Chase, UniCredit, and HSBC Holdings.
In March 2021, the Dutch investment giant Prosus, a global assets division of African holding company Naspers, through its Dutch subsidiary MIH Food Holdings, expanded its stake in Delivery Hero from 8.2 percent to 24.99 percent, effectively making it the largest shareholder in the company.
Delivery Hero completed the $4 billion acquisition of Woowa Brothers, which operates Baedal Minjok, South Korea’s largest food delivery company, in the same month.
