Taaleem Holdings, one of the largest K-12 premium education providers in the UAE with a portfolio consisting of 26 schools, today announced its intention to proceed with an Initial Public Offering (IPO) and to list its ordinary shares for trading on the Dubai Financial Market (DFM).
The Final Offer Price will be determined through the application of a book-building process, whereby a subscription orders ledger will be created through the subscription orders made only by Professional Investors.
Taaleem seeks to raise total capital of AED750,000,000, and it intends to use the net proceeds from the Offering to expand its premium K-12 schools network.
The Offering comprises Individual Subscribers (First Tranche), Professional Investors (Second Tranche), and Eligible Employees and Eligible Parents (Third Tranche). The subscription period will open on 10th November 2022 and end on 16th November 2022 for UAE Retail Investors, Eligible Employees and Eligible Parents, and on 17th November 2022 for Professional Investors.
The company reserves the right to amend the Offering and the tranche sizes at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws of the UAE and the approval of the Securities and Commodities Authority (SCA).
Taaleem shares are expected to start trading on or around 29th November 2022.
Commenting on the launch of Taaleem's IPO, the Chairman of Taaleem's Board of Directors, Khalid Ahmed Humaid Matar Altayer, said,
"I am immensely proud of Taaleem as it takes this significant, milestone step in its growth journey. The IPO provides an attractive investment opportunity for investors to participate in the next phase of the company's growth through the expansion of its premium K-12 segment, providing the platform for Taaleem to educate, inspire, and empower the students of today and tomorrow."
Taaleem's Chief Executive Officer, Alan Williamson, said,
"Taaleem operates in one of the fastest growing premium K-12 markets in the GCC – a market that is backed by strong economic drivers and Government ambition. The company caters to rapidly growing segments in the private education market, and we are proud to be the only schools group involved in all three of the UAE's Government-Partnership Programmes, a position gained through the delivery of strong student outcomes and business performance."
"Our mix of 10 Premium and 16 Government-Partnership Schools provides diverse opportunities for our more than 27,000 students and more than 3,000 employees as at 31 August 2022 for the 2022-2023 academic year. It also provides investors with an attractive opportunity to invest in two distinct and fast-growing segments of the UAE education market."
The Offering consists wholly of primary shares – those newly issued shares in the company for the IPO – with the company's intention to use the net proceeds from the Offering to expand its premium K-12 segment.
There are three broad groups of eligible investors. Each group can subscribe through their respective tranche. First Tranche will be made pursuant to the Prospectus. Ten percent of the Company's issued share capital (Offer Shares) are allocated to the First Tranche, restricted to individuals with a valid DFM National Investor Number (NIN) and UAE bank account number.
The Second Tranche offer will be made pursuant to the Prospectus. Around 88% of the Offer Shares are allocated to the Second Tranche, which is restricted to "Professional Investors". The Third Tranche offer will be made pursuant to the Prospectus. Two percent of the Offer Shares are allocated to the Third Tranche, which is restricted to Eligible Employees and Eligible Parents. All Third Tranche Subscribers must hold a NIN with the DFM.
Further, as part of the Second Offering, and following the UAE Companies Law, five percent of the Offering will be reserved for the offer to the EIA.
News Source: Emirates News Agency