Alef Education's IPO Raises AED1.89 Billion, Oversubscribed 39 Times

Alef Education Holding announced the successful completion of its Initial Public Offering (IPO) on the Main Market of the Abu Dhabi Securities Exchange (ADX) on Thursday.

The final offer price was set at AED1.35 per share, the top end of the previously announced range. This price implies a market capitalization at listing of AED9.45 billion (US$2.57 billion) and results in offer proceeds of AED1.89 billion (US$514 million).

The IPO attracted significant demand from local, regional, and international investors, with total gross demand exceeding AED74 billion (US$20 billion). This represents an oversubscription level of approximately 39 times, highlighting the strong market confidence in Alef Education’s industry position and investment potential.

The company plans to distribute a minimum dividend of AED135 million for each financial year ending December 31, 2024, and 2025, to all shareholders excluding the selling shareholders. This represents an annualized minimum dividend yield of 7.1% based on the final offer price.

Trading of Alef Education shares on the ADX is expected to commence on or around June 12, 2024.

Geoffrey Alphonso, CEO of Alef Education, expressed his satisfaction with the IPO’s outcome.

"The 39x oversubscription in our IPO not only reflects the appeal of our offering but also the belief in our future growth and ability to continue advancing educational outcomes for the communities we serve. The demand for our products and services remains high, especially given the increasing public and private investment in education across the MENA region,"

Alphonso stated.

The successful IPO underscores Alef Education's strong market position and the promising opportunities in the education sector, particularly in the MENA region.

News Source: Emirates News Agency