Alef Education Holding plc, a leading AI-powered learning solutions provider based in Abu Dhabi, has announced that its initial public offering (IPO) received overwhelming demand, with total gross demand from local, regional, and international investors exceeding Dh74 billion. The IPO’s oversubscription by 39 times reflects substantial investor interest in the company’s future prospects.
Final Offer Price
The company has set the final offer price at Dh1.35 per share, marking the top end of the previously announced offer price range. This valuation implies a market capitalization of Dh9.45 billion at the time of listing and results in offer proceeds of Dh1.89 billion.
Additionally, Alef Education anticipates distributing a minimum dividend of Dh135 million for each of its financial years ending December 31, 2024, and 2025, to all other shareholders (other than the selling shareholders). This equates to an annualized minimum dividend yield of 7.1 percent based on the final offer price.
The company anticipates admitting shares to trading on the Abu Dhabi Securities Exchange (ADX) on or around June 12, under the ticker symbol “AlefEdT”.
CEO Insights
Geoffrey Alphonso, CEO of Alef Education, expressed gratitude for the strong investor interest, emphasizing the company’s significant role in the education sector across its operating markets. He highlighted Alef Education’s commitment to delivering value and advancing educational outcomes, expressing optimism about the company’s future growth plans and expansion into target markets.
Following the completion of the IPO, the selling shareholders, Tech Nova Investment – Sole Proprietorship L.L.C, and Kryptonite Investments L.L.C, will retain shareholdings of 68 percent and 12 percent, respectively.
Investors who subscribed through the first tranche will receive an SMS confirmation of their allocation on June 11, with refunds due to commence from the same date.
Vijay Valecha, Chief Investment Officer at Century Financial, commented on Alef Education’s IPO, noting the remarkable demand for the company’s shares. He highlighted Alef Education’s potential in the education technology sector, expressing confidence in its future growth prospects.
As Alef Education prepares to commence trading on the Abu Dhabi Stock Exchange, Valecha emphasized the company’s role in driving innovation and transformation within the education landscape, contributing to the UAE’s evolution as a hub for investment and innovation.
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