Alef Education Holding Sets Stage For IPO And ADX Listing In A Strategic Move

Alef Education Holding plc has announced its plan to initiate an Initial Public Offering (IPO) and list its ordinary shares on the Main Market of the Abu Dhabi Securities Exchange (ADX). Alef Education is primarily owned by Abu Dhabi Capital Group (ADCG), a significant private institutional investment entity in the Middle East and North Africa.

The Selling Shareholders intend to sell 20% of Alef Education's total issued share capital, equivalent to 1,400,000,000 shares. These shares are existing ones being sold by Tech Nova Investment – Sole Proprietorship LLC and Kryptonite Investments LLC. The company will not receive any proceeds from this offering.

The subscription period for the First Tranche offer, which includes individual investors and other entities as defined in the UAE Prospectus, is expected to run from 28th May to 4th June 2024. The Second Tranche offer, targeting professional investors, will run from 28th May to 5th June 2024.

The Internal Shariah Supervision Committee of First Abu Dhabi Bank PJSC has confirmed that the offering complies with Shariah principles. However, investors are advised to conduct their own due diligence to ensure compliance with their specific requirements.

Potential Adjustments and Trading Date

The Selling Shareholders reserve the right to amend the size of the offering before the end of the subscription period, subject to applicable laws and approval from the Securities and Commodities Authority (SCA) in the UAE. Admission of shares to trading on ADX is anticipated around 12th June 2024.

Leadership Comments

Abdulhamid Mohammed Saeed Alahmadi, Chairman of Alef Education's Board of Directors, remarked on the company's growth and trust built with international governments and partners. He highlighted Alef Education's readiness to become a publicly listed company, emphasizing its unique position as the first EdTech company to be listed in the UAE.

Geoffrey Alphonso, Chief Executive Officer of Alef Education, noted that their growth has been supported by the UAE government's focus on quality education and increased fiscal spending. In 2023, over 15% of the UAE federal budget was allocated to education. This trend is consistent across the MENA region, which allocated an average of 4% of GDP towards education spending in 2022.

With inputs from WAM