Page 56 - ALEF EDUCATION PR REPORT - JUNE 2024

Before its listing, Alef Education completed an oversubscribed IPO, raising an impressive
Dh1.89 billion. The demand for its shares was exceptionally high, with subscriptions
totaling over Dh74 billion—39 times the offering amount. This strong investor interest
reflected confidence in Alef’s potential as a player in the UAE’s education sector.

Alef Education’s Business Model

Alef Education provides innovative solutions and services to both public and private
schools in the UAE and select overseas markets. Its offerings aim to bridge educational
gaps using cutting-edge AI technology. Investors saw the IPO as an opportunity to gain
exposure to the high-potential education sector, alongside other service providers like
Taaleem and Al Mal Capital REIT, which hold school properties in their portfolios.

Comparisons with Other Listings

Alef’s listing marked the third stock market debut in the UAE that year. Earlier, Parkin and
Spinneys had also entered the market, enjoying positive first-day bounces in their stock
prices. Despite the initial setback, Alef’s long-term prospects remained promising.

Chairman’s Statement

Abdulhamid Mohammed Saeed Alahmadi, Chairman of Alef Education, expressed pride in
being the first edtech company to list in the UAE. He emphasized the role of education in
societal and economic advancement and highlighted Alef’s commitment to improving
academic outcomes worldwide.

Investor Sentiment and Analyst Views

Analysts noted that investors were still exploring new sectors, including education-focused
listings. Alef’s track record, strong financials, and existing contracts with UAE schools
contributed to investor confidence. Even Taaleem, another education-focused stock, faced
a slow start initially but eventually gained momentum.

Dividend Plans

Alef Education plans to pay a minimum dividend of Dh135 million annually, starting this
year and continuing through 2025. Based on the Dh1.35 listing price, this implies an
annualized minimum dividend yield of 7.1%. Investors recognized the company’s growth

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