Page 275 - ALEF EDUCATION PR REPORT - JUNE 2024

6/19/24, 4:50 PM EFG Hermes completes advisory on $515m Alef IPO
EFG Hermes completes advisory on $515m Alef IPO

ABU DHABI, 7 days ago
EFG Hermes’ investment banking division has successfully completed its advisory on the $515 million initial public
offering (IPO) of Alef Education Holding on the Abu Dhabi Securities Exchange (ADX). EFG Hermes acted as Joint
Global Coordinator and Joint Bookrunner on the transaction.

Alef Education offered a total of 20% of its total issued share capital through the sale of 1.4 billion existing shares
held by Tech Nova Investment – Sole Proprietorship and Kryptonite Investments – OPC at AED1.35 per share,
implying a market capitalisation of AED9.45 billion ($2.6 billion).

The IPO captured overwhelming demand from local, regional, and international investors, with the total book covered
approximately 39 times. The company began trading under the ticker [AlefEdT].

Landmark achievement
Mostafa Gad, Global Head of Investment Banking at EFG Hermes, commented: “The IPO of Alef Education on the
ADX is a landmark achievement, marking our first Joint Global Coordinator role on an IPO on the ADX and
representing the first tech listing in the UAE with a public offering. The overwhelming demand for Alef Education's
shares underscores the company's compelling equity story and significant growth potential, as recognised by a
diverse group of investors.

“This successful IPO is not just a testament to Alef Education's innovative approach to digital learning but also a
reflection of our steadfast commitment to supporting the development of the UAE and the broader GCC capital
markets. With this being our tenth ECM transaction in the GCC and sixth in the UAE this year, we continue
reinforcing our dedication to fostering market growth and delivering exceptional value to our clients. We are proud to
contribute to this pivotal moment in the UAE's evolving financial landscape, and we look forward to further
opportunities that drive progress and innovation in the region.”

Alef Education is an award-winning provider of AI-powered personalised learning solutions and digital education
resources provider across grades K-12 for governments, primary and secondary schools, educators, students, and
their parents in the UAE and globally.

Consistent profitability
Alef Education has successfully enhanced student performance, evidenced by an average 8.5% score increase
across Arabic and Math in Indonesia. Serving 1.1 million students, 50,000 teachers, and 7,000 schools as of 2023, it
boasts consistent profitability, with a 62% average adjusted EBITDA margin (2021-2023), a strong balance sheet,
and long-term contracts ensuring revenue stability.

Key partnerships, like the long-standing contract with Abu Dhabi's ADEK, secure predictable revenue for seven
years. Operating in the UAE, Indonesia, and the US, the company employs both organic and inorganic growth
strategies to capitalise on the growing EdTech sector, driven by an experienced management team committed to
post-IPO growth and shareholder value.

This is the latest in a series of landmark deals that EFG Hermes has advised on in the GCC region over the years,
including 10 ECM deals in 2024 so far including Alef. Most recently, the investment banking division advised on the
private placement of Beyout Investment Group (BIG) on Boursa Kuwait as joint global coordinator and joint
bookrunner for the listing, following acting as joint bookrunner on the fully marketed secondary public offering of
Saudi Aramco on the Saudi Exchange.

Recent work
The team also recently worked as a joint financial advisor, bookrunner, and Underwriter on Miahona’s IPO with
oversubscription for institutional tranche 178.3 times, in addition to acting as joint bookrunner and underwriter on the
IPO of healthcare provider Fakeeh Care Group on the Saudi Exchange, with the total book covered almost 119 times
which followed the firm’s role in the Accelerated Equity Offering for Adnoc Drilling as a Joint Global Coordinator and
Joint Bookrunner.

Furthermore, the Firm has acted as a joint bookrunner on the IPO of Spinneys, an operator of premium grocery retail
supermarkets, on the Dubai Financial Market (DFM), which was covered more than 64 times, and Parkin’s IPO on
the DFM – the most oversubscribed IPO on the DFM to date.--TradeArabia News Service

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