Alef Education Announces IPO Price Range And Subscription Start On ADX

Alef Education Holding plc has announced the price range for its Initial Public Offering (IPO) on the Main Market of the Abu Dhabi Securities Exchange (ADX). The Offer Price Range is set between AED1.30 and AED1.35 per share, indicating a market capitalisation between AED9.10 billion (US$2.48 billion) and AED9.45 billion (US$2.57 billion).

The company will offer 1.4 billion shares, each with a nominal value of AED0.01, representing 20% of its issued share capital. Consequently, the total Offering size is expected to be between AED1.82 billion ($496 million) and AED1.89 billion ($515 million).

All shares to be offered are currently held by Tech Nova Investment – Sole Proprietorship LLC and Kryptonite Investments LLC. These entities 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).

Alef Education plans to distribute a minimum dividend of AED135 million to all other shareholders for each financial year ending 31st December 2024 and 2025. This implies a dividend yield of approximately 7.42% at the top of the price range and around 7.14% at the bottom.

The IPO subscription period begins today, 28th May, and will close on 4th June 2024 for Individual Investors (First Tranche) and on 5th June 2024 for Professional Investors (Second Tranche). The final offer price will be determined following the book-building process and is expected to be announced on 6th June 2024.

Admission of shares to trading on the ADX is anticipated around 12th June 2024.

The Offering complies with Shariah principles, as confirmed by a pronouncement from the Internal Shariah Supervision Committee of First Abu Dhabi Bank PJSC.

CEO's Statement

Geoffrey Alphonso, Chief Executive Officer of Alef Education, stated, "Our investment proposition has been incredibly well received by the market, with significant interest in our Offering since announcing our intention to float. We look forward to announcing the final offer price next week and are excited to welcome new shareholders as we embark on our next phase of growth."

With inputs from WAM