Page 71 - ALEF EDUCATION PR REPORT MAY 2024

supermarket Spinneys 1961 Holding Plc. Notably, Spinneys’ IPO is unique in the Gulf
region as it is not backed by the government.

“Alef Education offers another investment opportunity in the growing education sector,
utilising advanced tech platforms. Its Shariah-compliant status, declared by First Abu
Dhabi Bank, is expected to attract considerable interest from local investors.

Additionally, many UAE parents, who spend significantly on their children’s education,
may find the stock appealing,” Vijay Valecha, Chief Investment Officer, Century
Financial, said in a note.

Parents in the UAE are among the highest spenders on education globally. Dubai’s

appeal as a post-COVID haven has attracted many newcomers, where private
schooling is mandatory for expatriate children, highlighting the potential value of Alef
Education’s stock.

The company’s generous dividend policy is expected to appeal to investors, who will
closely monitor the valuation offered in the upcoming IPO, Valecha said. Private school

operator Taaleem Holdings, which listed in Dubai at the end of 2022, saw its shares
initially dip below the offer price but have since risen 23 per cent as profits increased
with higher student enrolments.

“Alef Education’s IPO is poised to attract significant interest due to its strong financial
performance, strategic growth plans, and high regional demand for quality education. Its

generous dividend policy and solid cash conversion ratio add to its appeal. Investors will
closely watch the valuation, anticipating substantial growth in the expanding ed-tech
market,” Valecha said.

https://www.khaleejtimes.com/business/markets/alef-education-ipo-price-range-values-edtech-
firm-between-dh9-1-billion-to-dh9-45-billion