Earlier this week, Dubai private school operator Taaleem announced its intention to proceed with an initial public offering (IPO) and to list its ordinary shares on the Dubai Financial Market (DFM). Through the offering, Taaleem seeks to raise a total capital of AED750 million ($205 million).
The proceeds from the IPO will be then used to fund the development of four new premium schools across Dubai and Abu Dhabi, Taaleem’s chief executive officer Alan Williamson told Arabian Business.
“Three of our planned schools will be in Dubai and one in Abu Dhabi, including two new schools under the Dubai British School brand,” Williamson said, adding that the Jumeirah and Mira locations we have chosen are extremely attractive in terms of the “catchments that they serve, positioning our schools in growing communities where we believe there is strong demand for affordable premium education.”
Taaleem has partnered with leading banks for the IPO. The joint global coordinators on the transaction are EFG-Hermes and Emirates NBD Capital.
Emirates NBD is the lead receiving bank on the deal, with other receiving banks being Abu Dhabi Islamic Bank and Emirates Islamic Bank.
All eligible retail investors in the UAE will be able to subscribe for shares through any of the receiving banks or directly through DFM, during the subscription period will run from November 10 until November 16.
For professional investors, the subscription period will end on November 17.
When asked why the Dubai-based private school operator decided to go with an IPO this year, Williamson said, “Given our understanding and knowledge of the premium education sector, we believe there is significant and growing demand for a high-quality educational offering in the UAE, especially those with established and trusted brands like ours.”
He said: “Our shareholders have decided that this is the optimal time to invest in the growth of our portfolio. The AED750 million raised from our IPO on Dubai Financial Market (DFM) will be used to help fund the expansion of our portfolio, to meet the growing demand for high quality K-12 education in the UAE.”
Williamson further explained that the IPO represents an “attractive opportunity” for investors to access Taaleem, which is known for its “strong track record in a fast-growing premium K-12 market, and positions us to cater to the growing demand for premium schools in the region.”
Taaleem has over 27,000 students, 3,000 employees and offer three curricula across 10 premium schools, those of which includes Dubai British School and Raha International.
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