Alef Education Holding's Historic Listing On ADX Ushers In New Era For EdTech

Shares of Alef Education Holding plc commenced trading on the Abu Dhabi Securities Exchange (ADX) today, marking a significant milestone as the first EdTech company to be listed on the ADX and the first public listing on the Exchange in 2024. The market opening bell was rung by Abdulhamid Mohammed Saeed Alahmadi, Chairman of Alef Education's Board of Directors, and Geoffrey Alphonso, Chief Executive Officer of Alef Education.

The official listing ceremony was attended by Ghannam Butti Almazrouei, ADX's Chairman, and Abdulla Salem Alnuaimi, ADX's Chief Executive Officer. The event also saw the presence of Alef Education's board members and senior executives from both Alef Education and ADX.

Alef Education shares began trading following a successful public offering that raised AED1.89 billion through the sale of 1.4 billion shares, representing 20% of the company, at AED1.35 per share. At the time of listing, the Group's market capitalisation stood at AED9.45 billion.

The IPO garnered strong interest from investors, with the offering being 39 times oversubscribed even after increasing the retail tranche from 8% to 10%. This robust demand underscores investor confidence in Alef Education's business model and growth potential.

Alahmadi commented, "Education is a cornerstone of societal and economic advancement, and Alef Education is proud to be creating innovative artificial intelligence solutions that help improve academic outcomes at a time of widening educational gaps worldwide. The rapid success of Alef Education also reflects the environment the Abu Dhabi government has created to nurture tech startups and support their capital markets journeys."

Alphonso added, "The robust demand for shares of Alef Education is a vote of confidence in the company's strong fundamentals and attractive growth prospects. The Group's robust financial position and capacity to raise capital position it well to take advantage of growth opportunities and continue maximising shareholder value. As an established EdTech player with a strong track record of success across its countries of operation, including the UAE, Indonesia, the US, and Morocco, Alef Education stands to benefit from further scale as a market leader."

Future Financial Commitments

For the financial years ending 31st December 2024 and 2025, Alef Education plans to pay a target minimum dividend amount to investors equivalent to an annualised dividend of AED135 million for each year. This commitment reflects the company's confidence in its future performance and its dedication to delivering value to shareholders.

The listing on ADX represents a significant step for Alef Education as it continues to expand its footprint in the EdTech sector. The company's innovative approach and strong financial health position it well for sustained growth in its existing markets and beyond.

With inputs from WAM