Abu Dhabi-based education technology leader Alef Education announced the price range for its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) today. The company also revealed the commencement of the subscription period for potential investors.
Alef Education set its offering price range between AED 1. 30 and AED 1. 35 per share. This translates to an expected market capitalization of between AED 9. 10 billion (US$2. 48 billion) and AED 9. 45 billion (US$2. 57 billion) at the time of listing.
The company will offer 1. 4 billion ordinary shares, representing 20% of its issued share capital. The total offering size is expected to range between AED 1. 82 billion (US$496 million) and AED 1. 89 billion (US$515 million). The proceeds from the IPO will not go to Alef Education itself, but rather to its existing shareholders, Tech Nova Investment and Kryptonite Investments.
Alef Education, a provider of AI-powered learning solutions, boasts a strong track record in the UAE. The company serves all public schools in the Emirates and has a presence in a select number of international markets. It also has a long-term contract with the Abu Dhabi Department of Education and Knowledge (ADEK), guaranteeing fee collection for the next seven years.
The subscription period for the IPO opened today, May 28th, 2024, and will close on June 4th for individual investors. Institutional investors will have an extra day, with their subscription period ending on June 5th. The final offer price is expected to be determined after the book-building process concludes.
Following the IPO, Alef Education has pledged to distribute a minimum dividend of AED 135 million for each of its financial years ending December 31, 2024 and 2025 to all shareholders excluding the selling shareholders. This translates to a projected dividend yield of approximately 7. 42% at the top of the price range and 7. 14% at the lower end.
If Alef Education successfully completes its IPO, it will be the first education technology company to list on a UAE exchange. The offering is seen as a significant development for the UAE's growing technology sector and education reform efforts.