Alef Education raises AED 1.89 billion in Abu Dhabi IPO

Alef Education, an Abu Dhabi-based education technology provider, completed the bookbuilding for its initial public offering on June 6, 2024, raising AED 1.89 billion, or about $514 million. The final offer price was set at AED 1.35 per share ahead of a listing on the Abu Dhabi Securities Exchange.

The price was at the top of the range marketed to investors and implied a market capitalization of AED 9.45 billion, about $2.57 billion, at listing. Total gross demand exceeded AED 74 billion, roughly $20 billion, meaning the offering was oversubscribed about 39 times. The shares were expected to begin trading on or around June 12, 2024. The company committed to a minimum dividend of AED 135 million for each of 2024 and 2025, equal to an annualized yield of 7.1 percent at the offer price.

The offering consisted of shares sold by existing shareholders. In commenting on the outcome, the company pointed to continued demand for its products and services and to rising public and private investment in education across the Middle East and North Africa. The transaction placed a learning technology company on the Abu Dhabi Securities Exchange, with the dividend commitment covering its first two financial years as a listed business.