Alef Education completes IPO bookbuild, raising Dh1.89 billion

Alef Education

 Alef Education Holding announced on Thursday the successful completion of the bookbuild and subscription process for its Initial Public Offering (IPO) on the Main Market of the Abu Dhabi Securities Exchange (ADX). This significant milestone reflects the company's strong position within the education sector and the robust investor interest it has garnered.

In its statement, Alef Education disclosed that the Final Offer Price was set at Dh1.35 per share, which is at the upper end of the previously announced Offer Price Range. This pricing translates to a market capitalisation of Dh9.45 billion ($2.57 billion) at the time of listing and results in total offer proceeds of Dh1.89 billion ($514 million).

The IPO received overwhelming demand from a diverse group of investors, including those from local, regional, and international markets. The total gross demand for the IPO amounted to over Dh74 billion ($20 billion), indicating an oversubscription level of approximately 39 times the aggregate amount. This significant level of oversubscription underscores the confidence that investors have in Alef Education's market position and growth potential.

The strong investor interest highlights Alef Education's appeal and the substantial market opportunities available to the company. The company’s unique value proposition and its strategic position within the educational technology sector have clearly resonated with investors. 

Alef Education has committed to distributing a minimum dividend of Dh135 million with respect to each of its financial years ending December 31, 2024, and December 31, 2025. This dividend will be paid to all shareholders other than the selling shareholders, implying an annualised minimum dividend yield of 7.1% based on the Final Offer Price. This commitment to dividends is expected to further enhance shareholder value and attract long-term investors.

The admission of Alef Education's shares to trading on the ADX is anticipated to occur on or around June 12, 2024. This listing will mark a significant milestone for the company as it seeks to leverage the capital markets to fund its future growth initiatives and expand its footprint in the educational technology sector.

Geoffrey Alphonso, Chief Executive Officer of Alef Education, expressed his enthusiasm for the IPO's success. "The 39x oversubscription in our IPO not only reflects the appeal of our Offering but also the belief in our future growth and ability to continue advancing educational outcomes for the communities we serve," he said. "The demand for our products and services remains high, especially given the increasing public and private investment in education across the MENA region."

Alef Education's successful IPO is a testament to the company's strategic vision and its commitment to transforming educational experiences through innovative technologies. The company has positioned itself as a leader in the educational technology sector, providing digital learning solutions that enhance educational outcomes for students across the MENA region.

The funds raised through the IPO will enable Alef Education to invest further in its technology platform, expand its product offerings, and enter new markets. This will help the company to continue its mission of improving educational outcomes through the use of advanced technologies and innovative teaching methodologies.

Alef Education's journey from its inception to its IPO highlights the growing importance of digital learning solutions in today’s educational landscape. As governments and educational institutions increasingly recognize the value of technology in education, companies like Alef Education are well-positioned to play a crucial role in shaping the future of learning.

In conclusion, Alef Education's successful IPO and its forthcoming listing on the ADX represent a significant achievement for the company and its stakeholders. The strong investor demand and substantial oversubscription reflect confidence in Alef Education's business model and growth prospects. As the company continues to innovate and expand, it is poised to make a lasting impact on the education sector and deliver value to its shareholders.