Alef Education recently announced the successful completion of the book-build and subscription process for its Initial Public Offering (IPO) on the Abu Dabi Securities Exchange (ADX) Main Market. According to the statement, the company unannounced the Final Offer Price at AED1.35 per share, at the top end of the previously announced Offer Price Range. This implies a market capitalization at the listing of AED9.45 million (US$2.57 billion), resulting in offer proceeds of AED1.89 billion ($515 million).
The Offering saw significant demand from local, regional, and international investors, with total gross demand for the IPO amounting to over AED74 billion (US$20 billion), implying an oversubscription level of approximately 39x in aggregate. The overwhelming demand from a broad range of investors demonstrates the strength of the company’s industry position, the market opportunity offered, and its unique investment proposition.
Geoffrey Alphonso, the CEO of Alef Education, expressed his optimism about the company’s future growth and its ability to continue advancing educational outcomes. He said:
The 39x oversubscription in our IPO reflects not only the appeal of our Offering but also 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.
The statement added that Alef Education expects to distribute a minimum dividend of AED135 million to all other shareholders (other than the Selling Shareholders) for each of its financial years ending 31 December 2024 and 2025, implying an annualized minimum dividend yield of 7.1% based on the Final Offer Price.
Admission of shares to trading on the ADX is anticipated to occur on or around 12 June 2024.
Alef Education, with its headquarters in the United Arab Emirates and offices in the US, Indonesia, and Jordan, is on a mission to revolutionize the educational process. The company’s unique approach, which combines cutting-edge pedagogical frameworks grounded in data science and AI-powered personalized learning, is designed to enhance outcomes and increase accessibility to education for all. Currently, over 1 million students in 14,000 schools across the United Arab Emirates, the United States, Indonesia, and Morocco are benefiting from this innovative platform.
