The price per share has been set between AED 1.30 and AED 1.35, resulting in a market capitalization ranging from AED 9.10 billion to AED 9.45 billion upon listing. Alef Education plans to offer 1.4 billion shares, which is 20% of its issued share capital. This offering is expected to generate proceeds between AED 1.82 billion and AED 1.89 billion.
The subscription period for individual investors opened on May 28, 2024, and closed on June 4, 2024, while the period for professional investors extended until June 5, 2024. The final offer price was determined through a book-building process and announced on June 6, 2024. Shares are expected to commence trading on the Abu Dhabi Securities Exchange (ADX) under the ticker symbol “AlefEdT” around June 12, 2024.
CEO Geoffrey Alphonso expressed his gratitude for the strong investor interest, emphasizing Alef Education's role in advancing educational outcomes across its operational markets. The company plans to distribute a minimum annual dividend of AED 135 million to shareholders, implying a yield between 7.14% and 7.42%, depending on the final offer price.
The IPO saw unprecedented demand, with subscriptions oversubscribed by 39 times, garnering over AED 74 billion from local, regional, and international investors. This high level of interest underscores the confidence in Alef Education’s growth prospects and its significant impact on the educational technology sector in the MENA region.
Following the IPO, major shareholders Tech Nova Investment – Sole Proprietorship L.L.C and Kryptonite Investments L.L.C will retain significant stakes of 68% and 12% respectively. Investors who subscribed through the first tranche received SMS confirmations of their allocations on June 11, 2024, with refunds starting the same day.
Vijay Valecha, Chief Investment Officer at Century Financial, highlighted Alef Education’s potential to drive innovation within the education sector, contributing to the UAE’s evolution as a hub for investment and technological advancement.
Alef Education’s IPO marks a significant milestone for the company as it aims to expand its footprint in the education technology industry, leveraging increased public and private investments across the region.
For further updates, Alef Education’s activities can be followed on various financial and educational news platforms.