(Photo : Delivery Hero Logo)

German multinational online food ordering and food delivery company Delivery Hero is preparing for an initial public offering of its subsidiary Talabat on the Dubai Stock Exchange. 
Under the planned listing, the parent would sell existing shares in Talabat while retaining a majority stake, according to a statement. 
The company also noted that the listing is expected to happen in the fourth quarter of this year. 
IPO aimed at increasing market presence
In the statement, the company said that the IPO is aimed at bolstering the delivery operations of the company in the wider Middle East and North Africa region. 
The company added that execution of the upcoming IPO remains subject to market conditions, the approval of a securities prospectus by the Securities and Commodities Authority of the UAE and further resolutions of the Management Board and Supervisory Board of Delivery Hero.
Talabat currently operates in countries including the UAE, Saudi Arabia, Bahrain, Egypt, Iraq, Jordan, and Kuwait. 
Delivery Hero reports strong performance in Q2
Meanwhile, on August 29, Delivery Hero said that its quarterly gross merchandise value (GMV), a common metric for delivery firms measuring the total value of all goods sold, surged by 7.4 percent to $13.24 billion in the second quarter of this year. 
According to a statement, the company reported a 28 percent year-on-year GMV growth in the Middle East and North Africa region. 
"We delivered another strong quarter of growth and improved profitability which is a testament to our relentless focus on customer experience, operational efficiency, and category leadership," said Niklas Östberg, CEO and Co-Founder of Delivery Hero. 
He added: "We ended the quarter on a high note and expect further growth and a significant increase in profitability in the second quarter of this year." 
Marie-Anne Popp, interim, interim chief financial officer of Delivery Hero noted that the company has successfully met its financial performance targets. 
"These numbers reflect the effectiveness of our business strategy to drive profitable growth, cash generation, and disciplined capital allocation," she added.