As mentioned by Muhannad Al-Sane it is an exciting moment for the MENA investment landscape, and the talabat IPO marks more than just a successful public offering—it’s a significant catalyst for growth in private markets. Here’s why I believe this development opens up unique opportunities for investors and entrepreneurs alike: 1. Validation of the Market: The Talabat IPO serves as a strong validation of the regional market. With prominent players going public, it boosts investors' confidence in the potential for high returns in similar ventures. This can lead to increased capital flowing into private equity and venture capital funds. 2. Increased Valuation Benchmarks: The successful listing establishes credible benchmarks for valuations across the private markets. This is an opportune moment for entrepreneurs to showcase their potential and for investors to identify those high-growth startups that can follow in Talabat’s footsteps. 3. Expanding Exit Strategies: With the IPO landscape becoming more robust, another layer of exit strategies opens up for companies in the private sector. As startups see successful pathways through IPOs, private investors may find increased opportunities to cash out, creating a more appealing investment climate and encouraging further investments in high-growth potential sectors. 4. Focus on M&A Opportunities: As the IPO creates a ripple effect, companies that may not be ready to go public can become attractive acquisition targets, fostering a vibrant mergers and acquisitions environment. Established firms may look to acquire innovative startups to enhance their market positioning or to diversify their offerings, leading to strategic partnerships and collaboration opportunities. 5. Shaping Investor Expectations: Talabat’s success is likely to shape investor expectations. As a result, private investors may seek out opportunities in companies that demonstrate similar scalability and resilience, spurring innovation in these areas. In conclusion, the Talabat IPO is more than just a milestone for one company; it's an encouraging sign for private markets that entices investors, fuels entrepreneurial ambition, and cultivates a thriving ecosystem for innovation. As Muhannad Al-Sane mentioned, there is huge potential in #privatemarkets. What are your thoughts on this?
Chairman & CEO Almowazi Capital | Board Member at Kuwait Direct Investment Authority
The success of Talabat's $2 billion IPO last week is a huge win for the Kuwaiti startup and Emirati IPO ecosystems. We've all heard about Talabat's incredible journey. It all started in Kuwait with four Kuwaiti entrepreneurs. From there, they expanded regionally and eventually got acquired by Rocket Internet for $170 million in 2015. Delivery Hero then bought talabat as part of Rocket Internet's food delivery business in 2016. And now, look at them – a massive IPO raising $2 billion! This really highlights something important: the investment opportunities within the private market, especially with those smaller, fast-growing startups. The challenge lies in identifying these gems. Talabat is a perfect example. It was a high-growth startup with incredible potential, acquired by a bigger player, and ultimately, Delivery Hero reaped the rewards with the IPO. It wasn't always smooth sailing for Talabat. They faced challenges scaling their business. But Rocket Hero provided the capital and support they needed to grow. Back in 2019, during my role as Chairman of the Kuwait Economic Society, I invited Mr. Mohammed Jaffar one of Talabat's key investors at that time. We wanted to showcase his brilliant story, from the initial acquisition to the exit phase with Rocket Internet. He also emphasized the reasons behind his decision to sell his stake early on, instead of waiting for an IPO. Smart investors are always on the lookout for promising companies. We need to bridge this gap, and that requires experienced professionals. As I mentioned in my panel discussion at the family office event last week, there's immense potential in the private market, especially for those high-growth startups. The successful exit for private companies and startups often comes through a successful IPO. I strongly believe that smart founders of private companies and startups will achieve their listing goals and exit successfully, just like Talabat did. Here is the link to the interview with Mr. Mohammed Jaffar, Mr. Abdulwahab Al Essa - founder of Boutiqaat, and Mr. Abdullah Al Mutawa founder of Carriage: #privateequity #privatemarket #ipo #middleeast #gcc #familyoffice #venturecapital #investmentbanking #assetmanagement #mergersandacquisitions #alternativeinvestments #wealthmanagement