Delivery Hero SE's CEO has expressed concern that the recent IPO of its Middle Eastern subsidiary, Talabat, has resulted in the parent company being undervalued.

Talabat's initial public offering was priced at the top of its range, giving the subsidiary a market capitalization of $10.2 billion, which closely matches Delivery Hero's valuation of €10.9 billion ($11.5 billion).

This public listing is expected to bring in a significant amount of cash for Delivery Hero, highlighting the difference in market perception between the parent company and its regional unit.

This situation raises questions about Delivery Hero's overall valuation strategy in the competitive food delivery sector.