Investing.com -- Shares of Delivery Hero (ETR:DHER) jumped on Thursday after it reported a better-than-expected growth in its second-quarter gross merchandise value (GMV).
At 4:12 am (0812 GMT), Delivery Hero was trading 5.1% up at €24.70.
The online takeaway food giant reported a 7.4% increase in GMV, reaching 11.89 billion euros in constant currency terms.
“The company has reiterated its FY guidance, with the mid-point being in line with consensus adj. EBITDA. DHER also confirms that it is fully on track to deliver positive FCF in FY24,” said analysts at RBC Capita; Markets in a note.
The stock, which has plummeted approximately 85% from its January 2021 peak amid a broader investor retreat from food delivery stocks post-pandemic.
“Delivery Hero is preparing an IPO of its Talabat business on the Dubai stock exchange in Q4 2024. A listing may be pursued through a secondary sale of shares by Delivery Hero which would retain the majority interest in the local listing entity after an IPO,” RBC added.
The company flagged its Middle East and North Africa (MENA) region as its fastest-growing market, with a 28% GMV increase year-over-year.
The MENA results were adjusted to account for the hyperinflationary conditions in Turkey and Lebanon.
“If successfully executed (IPO of its Talabat business), this will compound the BS repair afforded by the sale of foodpanda Taiwan while shining a light on what is a quality asset currently somewhat lost within DH's conglomerate corporate structure,” said analysts at Jefferies.