Alef Education Holding has successfully completed its bookbuild and subscription process for its initial public offerings (IPOs) on the Abu Dhabi Securities Exchange (ADX), WAM reported.
The company announced that the final offer price for its shares was set at AED1.35 per share, at the top end of the indicated range.
We are pleased to announce that the subscription for the #AlefEducation initial public offering is now closed, with the final offer price set a tAED 1.35.
— Alef Education (@AlefEducation) June 6, 2024
To learn more about our IPO, please visit: https://t.co/TDLEe2MATq#AlefEducation #EdTech #ADX #IPO #Education #Innovation pic.twitter.com/otJEKa3cIH
This gives Alef Education a market capitalisation of AED9.45 billion ($2.57 billion approximately) and offer proceeds of AED1.89 billion ($514 million approximately).
“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. 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 CEO Geoffrey Alphonso said.
The IPO saw high demand from “a broad range of investors,” the statement said. Total gross demand amounted to over AED74 billion ($20 billion approximately), representing an over-subscription level of approximately 39 times the shares on offer.
Alef Education also stated that it plans to distribute minimum dividends of AED135 million per year for 2024 and 2025, equivalent to an annualised yield of 7.1 percent based on the final offer price.
Trading of Alef Education shares on the ADX is scheduled to commence on or around 12 June 2024.
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