Page 87 - ALEF EDUCATION PR REPORT MAY 2024

5/29/24, 10:39 AM Alef Education targets $2.5bn valuation in UAE's first edtech IPO - Arabian Business: Latest News on the Middle East, Real Estat…
have a market capitalisation of about $2.57 billion when it lists about 20 percent of its
shares next month.

Founded in 2008, Alef uses artificial intelligence to develop digital learning tools for

schools, universities, governments, and corporations across the Middle East. The
company plans to sell 1.4 billion existing shares held by its founders, tech investment

firms Tech Nova and Kryptonite.

“Our investment proposition has been incredibly well received by the market,” said Alef

CEO Geoffrey Alphonso.

“We are offering UAE and international investors the opportunity to participate in the

growth of a leading and homegrown player in the underrepresented education
technology sector.”

Alef is the largest EdTech firm to list in the UAE after Esol Education, which raised $49

million when it went public on the Dubai bourse last year. The listing comes amid a

surge in IPO activity in the Gulf region, where companies have raised over $22 billion
from IPOs in the past two years.

The company expects to pay out at least 90 percent of net income as dividends in 2024

and 2025, with a minimum payout of AED135 million each year guaranteed by its

founders. That implies a dividend yield of around 7 percent at the top of the price
range.

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