The board of directors at Talabat Holding PLC has recommended initiating a stock buyback program amounting to 5% of the company’s issued capital, set to take place over a two-year period following shareholder approval.
This proposal aligns with the strategic investments recently unveiled by the company to bolster future growth, in addition to its established dividend distribution policy, showcasing a disciplined and integrated capital allocation framework. It reflects the board’s confidence in Talabat’s long-term growth strategy and its commitment to delivering sustainable value for shareholders.
Should the program be approved, stock repurchases will occur through transactions on the Dubai Financial Market (DFM), in accordance with existing regulations and under the oversight of the board. The program is anticipated to be funded through the company’s available cash resources and free cash flow generated from its operations.
The actual number of shares to be repurchased will depend on market conditions, share price levels, available liquidity, and other related factors. There are no guarantees that the company will acquire the full proposed 5% stake.
As previously announced, shareholders will vote on several resolutions during the annual general meeting, including the approval of final dividends totaling $219 million (3.450 fils per share) for the second half of 2025.
Consequently, the total dividends for the year 2025 will reach $421 million (6.638 fils per share), while the overall distributions since the initial public offering amount to $531 million (8.373 fils per share).
Further details regarding the agenda of the general meeting, including the official invitation, will be available on the company’s website as well as the Dubai Financial Market website, with updates to be provided in due course. According to Tun Khaisel, CEO of Talabat:
“The stock buyback program demonstrates our confidence in Talabat’s future and our belief that the current valuation of the company and its share price do not fully reflect the long-term strength of our platform.”
He added that this program, in conjunction with the dividend policy in place, underscores our commitment to delivering substantial total returns to our shareholders while continuing to invest strategically in the growth of the food, grocery, and retail sectors.
The capital allocation framework at Talabat prioritizes investments that yield returns exceeding the cost of capital, while returning surplus capital to shareholders when appropriate.
Given the company’s robust balance sheet, strong cash flow capabilities, and ongoing investments in growth across food, grocery, and retail sectors, the proposed stock buyback program reflects the board’s belief that repurchases are an effective means of utilizing surplus capital in light of the current valuation of the company.