Talabat proposes 5% share buyback after record US$421M dividend payout

UAE – Talabat has recommended a share buyback programme of up to 5% of its issued share capital, to be executed over two years following shareholder approval, as the MENA region’s leading delivery platform returns excess capital to investors.

The proposal comes alongside a final dividend of AED 804 million (US$219 million) for the second half of 2025, bringing total dividends for the year to AED 1.55 billion (US$421 million) and cumulative post-IPO payouts to AED 1.95 billion (US$531 million).

Confidence in Undervalued Stock

CEO Toon Gyssels framed the buyback as a statement of conviction: “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,” he added.

The programme, if approved at the 13 April 2026 AGM, will be funded from existing cash resources and ongoing free cash flow generation.

Disciplined Capital Framework in Action

The buyback forms part of talabat’s coherent capital allocation strategy, balancing growth investments with shareholder returns.

The company prioritizes investments that generate returns above its cost of capital while returning excess cash when appropriate.

With a strong balance sheet and robust cash generation, the Board views share repurchases at current valuation as an efficient use of capital.

The move follows the company’s earlier commitment to distribute at least AED 1.47 billion (US$400 million) in 2025 dividends, representing a 90% payout ratio of reported net income.

Liquidity Boost on the Horizon

Separately, the Board has mandated management to appoint a liquidity provider for talabat’s shares on the Dubai Financial Market.

This initiative aims to enhance order book depth and improve overall trading liquidity for the company’s shares.

A further announcement will be made upon completion of the appointment process.

AGM Set for 13 April

Shareholders will vote on the buyback programme and final dividend at the Annual General Meeting scheduled for 13 April 2026.

The proposed final dividend of AED 804 million (US$219 million) for the second half of 2025, combined with the interim dividend of AED 742 million (US$202 million) paid in October 2025, delivers on management’s promise of substantial shareholder returns.

With cumulative dividends since IPO now reaching AED 1.95 billion (US$531 million), talabat continues to reward investors while investing strategically across its food, grocery, and retail categories.

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