Page 57 - ALEF EDUCATION PR REPORT MAY 2024

5/29/24, 10:25 AM Edtech Firm Seeks $515 Million in Abu Dhabi’s First IPO of 2024 - BNN Bloomberg

TECHNOLOGY Investing Company News News Wire May 28, 2024
Edtech Firm Seeks $515 Million in Abu

Dhabi’s First IPO of 2024

Julia Fioretti, Bloomberg News

(Bloomberg) -- Abu Dhabi-based Alef Education’s shareholders are looking to raise as
much as 1.89 billion dirhams ($515 million) in an initial public offering that will be the
first in the United Arab Emirates’ capital this year.

The price range was set at 1.30 dirhams to 1.35 dirhams per share, according to a
statement on Tuesday. Tech Nova Investment – Sole Proprietorship LLC and Kryptonite
Investments LLC are offering 1.4 billion shares, or a 20% stake, in the edtech firm.

At the top end, the price range implies a market capitalization of 9.45 billion dirhams.
The company will take orders from institutional investors until June 5, with final pricing
due on June 6. The shares are expected to start trading June 12.

Alef expects to pay investors a dividend of at least 135 million dirhams for this year and
2025, implying a yield of as much as 7.42%.

While there have been no IPOs in Abu Dhabi so far this year, it’s been a busy period for

listings in the Persian Gulf. Dubai has hosted two: 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.

Saudi Arabia has seen a burst of activity in the last month and several of the IPOs have
drawn many times more orders from investors than there are shares available.

Founded in 2016 and indirectly majority owned by Abu Dhabi Capital Group, Alef
Education serves the kindergarten to 12th grade sector. It operates in countries
including the UAE, Indonesia, Morocco and the US and plans to expand both
organically and inorganically.

First Abu Dhabi Bank PJSC and EFG Hermes are the joint global coordinators on the
IPO.

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.

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