Page 74 - ALEF EDUCATION PR REPORT - JUNE 2024

The education tech company had completed a successful IPO last week, getting over-
subscribed 39x and taking Dh74 billion. Alef, which offers its solutions and services to
public and private schools in the UAE and in select overseas markets, had raised
Dh1.89 billion from the issue. At Dh1.35 a share, that meant a market cap of Dh9.45
billion on listing.

The Alef float was a chance for investors to take exposure in the UAE's high potential
education sector, whether it's in service providers like Taaleem or Alef, or those like Al
Mal Capital REIT, which has school properties in its portfolio.

This is the UAE's third stock market listing of the year, after Parkin and Spinneys on
DFM, both of which enjoyed first-day bounces in their stock prices.

In a statement, Abdulhamid Mohammed Saeed Alahmadi, Chairman of Alef Education,
said, "We are very pleased to be the first edtech company to list in the UAE, which will
help facilitate investor access to a promising new economy industry.

"Education is a cornerstone of societal and economic advancement, and Alef Education
is proud to be creating innovative AI solutions that help improve academic outcomes at
a time of widening educational gaps worldwide."

Alef Education offered 20 per cent of its issued share capital through 1.4 billion existing
shares held by Tech Nova Investment – Sole Proprietorship llc and Kryptonite
Investments llc.

"Investors are still getting a feel of new sectors, such as education-focused listings on
UAE stock markets," said an analyst. "Alef Education has a sizeable track record, on
contracts with UAE public and private schools, and when it comes to its financials. Even
Taaleem had a slow start when it listed, and in the recent past, that stock has had a
great run."

Alef's dividend plans

The company expects to pay a minimum dividend of Dh135 million this year and in 2025
for its new shareholders, which implies an annualised minimum dividend yield of 7.1 per
cent based on the Dh1.35 listing price.

"The overwhelming demand for Alef Education's shares underscores the company's
compelling equity story and significant growth potential, as recognized by a diverse
group of investors," said Mostafa Gad, Global Head of Investment Banking at EFG
Hermes, which advised Alef through to the listing.

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