Alef Education Holding plc, an AI-powered learning solutions provider based in Abu Dhabi, announced a price range of Dh1.30 and Dh1.35 per share for its initial public offering on Tuesday. The offer price range implies a market capitalisation at the time of listing of between Dh9.10 billion ($ 2.48 billion) and Dh9.45 billion.
The final offer price will be determined following the book-building process and is expected to be announced on June 6. Admission of shares to trading on the main market of the Abu Dhabi Securities Exchange (ADX) is anticipated to occur on or around June 12, the company said. The IPO subscription period started on Tuesday and is expected to close on June 4 for individual investors (first tranche) and June 5 for professional investors (second tranche).
The company expects to distribute a minimum dividend of Dh135 million with respect to each of its financial years ending December 31, 2024 and 2025 to all other shareholders (other than the Selling Shareholders), implying a dividend yield of around 7.42 per cent at the bottom of the price range and around 7.14 per cent at the top of the price range.
Geoffrey Alphonso, chief executive officer of Alef Education, expressed confidence in the strong market interest and the investment proposition. He also highlighted the opportunity for UAE and international investors to participate in the growth of the education technology sector.
The deal is part of a busy period for IPOs in the Arabian Gulf. With the growing education sector and advanced tech platforms, Alef Education's IPO is expected to attract considerable interest from local investors, as well as parents in the UAE who prioritize education spend. The company’s generous dividend policy and its position in the expanding ed-tech market further add to its appeal, making it a significant investment opportunity.
