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6/14/24, 10:37 AM Alef Education shares slump in first day of trading on ADX - The Circuit
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Abu Dhabi edtech platform Alef Education struggled on its first day of
trading on the ADX, in a rare down day for an IPO on a Gulf exchange.
The shares closed 13% lower than the offer price of 1.35 dirhams on
Wednesday despite strong demand for the stock when the IPO was rolled out.
Investors poured in over $20 billion worth of orders, pricing Alef at the top of
the range and raising 1.89 billion dirhams ($515 million) for the company.
But Abu Dhabi’s first initial share sale of 2024 marks the worst debut since
2021. The 14 companies that had gone public since the start of 2021 saw
their shares rise by about 31% on average in the first session, according
to Bloomberg data.
“Opening up below IPO price reflects negatively on the valuation it was sold
at and the risk appetite of investors and liquidity of the market at that point,”
Mohammed Ali Yasin, founder and chief executive officer of Oracle
Financial Consultancy and Investments, told the news agency.
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