Page 286 - ALEF EDUCATION PR REPORT MAY 2024

5/20/24, 1:12 PM Edtech Firm Alef to Go Public in Abu Dhabi’s First IPO of 2024 - BNN Bloomberg
TECHNOLOGY Investing Company News News Wire 2h ago
Edtech Firm Alef to Go Public in Abu Dhabi’s First

IPO of 2024

Julia Fioretti, Bloomberg News

(Bloomberg) -- Abu Dhabi-based Alef Education’s shareholders plan to sell a 20% stake in an initial
public offering that will be the first in the United Arab Emirates’ capital this year.

Tech Nova Investment – Sole Proprietorship LLC and Kryptonite Investments LLC will offer 1.4 billion
shares in the edtech firm, according to a statement on Monday. The underwriters will take orders for
the shares from May 28, with trading set to begin around June 12.

The deal comes amid a busy period for listings in the Persian Gulf. Saudi Arabia has seen a burst of
activity in the last few weeks and several of the IPOs have drawn many times more orders from
investors than there are shares available.

Dubai has hosted two IPOs this year: the $429 million listing of the city’s public parking business
Parkin Co., and the $375 million float of high-end supermarket Spinneys 1961 Holding Plc. Spinneys’
IPO is a rarity in the Gulf country — a first-time share sale by a company not backed by the
government.

Founded in 2016 and indirectly majority owned by Abu Dhabi Capital Group, Alef Education serves the
kindergarten to 12th grade sector. First Abu Dhabi Bank PJSC and EFG Hermes are the joint global
coordinators on the IPO.

It reported revenue of 750 million dirhams ($204 million) for the year ended 2023, a 12.4% increase
from 2021, and an adjusted net profit margin of 61%. The firm said it aims to adopt a semi-annual
dividend distribution policy, with a minimum payout ratio of 90% of net profit for 2024 and 2025.

Parents in the UAE are among the world’s biggest spenders when it comes to educating their children.
Dubai’s emergence as a post-Covid haven has drawn newcomers to the emirate, where private
schools are mandatory for expatriate children.

Private school operator Taaleem Holdings, which listed in Dubai at the end of 2022, initially saw its
shares fall below the offer price but they are now trading 23% higher as profit rose on higher student
enrollments.

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