Alef Education, the pioneering educational technology firm in the UAE and the first to go public on the ADX in 2024, saw its shares drop by nearly 18% during its initial trading day on the Abu Dhabi stock exchange. The stock started flat and then declined to Dh1.11 per share, compared to its IPO price of Dh1.35. By 0731 GMT, the shares were down 10.4% and were at the bottom of the Abu Dhabi benchmark index, eventually closing at Dh1.18, marking a 12.59% decrease for the day. The AI-powered learning solutions provider began trading under the ticker symbol 'AlefEdT'. The market opening bell was rung by Abdulhamid Mohammed Saeed Alahmadi, Chairman of Alef Education’s Board, and Geoffrey Alphonso, CEO of Alef Education, during an official listing ceremony attended by Ghannam Butti Almazrouei, ADX’s Chairman, and Abdulla Salem Alnuaimi, ADX’s CEO, along with other senior executives. Alef Education's public offering was successful, raising Dh1.89 billion through the sale of 1.4 billion shares, representing 20% of the company, with a market capitalization of Dh9.45 billion at listing. The IPO was highly oversubscribed, 39 times the original amount, even after increasing the retail tranche from 8.0% to 10%. Alahmadi expressed satisfaction with being the first EdTech company to list in the UAE, highlighting the support from the Abu Dhabi government for tech startups. Alphonso noted the strong demand for shares as a testament to the company's solid fundamentals and growth potential. Alef Education plans to distribute a minimum annual dividend of Dh135 million for the financial years ending 31 December 2024 and 2025. Since its founding in 2016, Alef Education has partnered with governments and private schools in the UAE and other countries, offering AI-driven solutions from kindergarten to Grade 12, focusing on personalized learning experiences.
Text: Lara Palmer
12.06.2024
UAE's First EdTech Firm Lists on ADX, Shares Fall Despite Successful IPO and Strong Investor Demand