Economy
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May 28, 2024May 28, 2024
Alef Education announces offer price range, start of IPO’s subscription period

Alef Education Holding plc today announced the price range for the sale of its shares and the start of the subscription period for its Initial Public Offering (IPO) on the Main Market of the Abu Dhabi Securities Exchange (ADX).

In a statement today, the company said that the Offer Price Range has been set between AED1.30 and AED1.35 per Share, implying a market capitalisation at the time of listing between AED9.10 billion (US$2.48 billion) and AED9.45 billion (US$2.57 billion).

Alef will offer 1.4 billion (1,400,000,000) Shares, each with a nominal value of AED0.01, which are being made available in the Offering, representing 20% of the company’s issued share capital. As a result, 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 existing shares held by Tech Nova Investment – Sole Proprietorship LLC and Kryptonite Investments LLC, who reserve the right to amend the size of the Offering at any time before the end of the subscription period subject to applicable laws and the approval of the Securities and Commodities Authority (SCA).

The company expects to distribute a minimum dividend of AED135 million to all other shareholders for each of its financial years ending 31st December 2024 and 2025, implying a dividend yield of c. 7.42% at the top of the price range and c. 7.14% at the bottom of the price range.

The IPO subscription period starts today, 28th May, and is expected to close on 4th June 2024 for Individual Investors (First Tranche) and 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 to occur on or around 12th June 2024.

The Offering complies with Shariah principles, and the Internal Shariah Supervision Committee of First Abu Dhabi Bank PJSC has issued a pronouncement to this effect.

Geoffrey Alphonso, Chief Executive Officer of Alef Education, commented, “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.”