Upcoming IPO: Alef Education to list on Abu Dhabi Securities Exchange

Alef Education has announced its intention to make an Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

Alef Education is owned by Abu Dhabi Capital Group (ADCG) ,one of the largest private institutional investment groups in the Middle East and North Africa. with a portfolio spanning multiple asset classes, industries, and geographies.

In its official release, Alef Education said it expects to sell 20 per cent of the total issued share capital of Alef Education (equivalent to 1,400,000,000 shares).

All shares are existing shares being sold by Tech Nova Investment – Sole Proprietorship and Kryptonite Investments.

Geoffrey Alphonso, chief executive of Alef Education, commented: “Alef Education’s growing presence across the UAE and internationally, as well as its leading position as a UAE-born and holistic provider of digital education solutions, sets it apart from other players in the market. Through our award-winning, scalable multiplatform solution and multilingual approach adaptable to many geographies, we are able to effectively empower educators with practical tools that have proven successful in improving educational outcomes across markets.

“To date, our growth has been strongly supported by – and continues to benefit from – the UAE government’s focus on providing quality education to a broad student base, and increased fiscal spending allocated to education, totalling over 15 per cent of the UAE federal budget in 2023. This remains true across and beyond the GCC, with the MENA region allocating an average of 4 per cent of GDP towards education spending in 2022.

The offering shall be made available to the following subscribers:
● To individual and other investors as part of the first tranche of the offer which will comprise 8 per cent of the offer shares, representing 112,000,000 shares.
● To professional investors as part of the second tranche of the offer which will comprise 92 per cent of the offer shares, representing 1,288,000,000 shares.

The first tranche subscription period is expected to run from May 28 to June 4, with the Second Tranche subscription period expected to run from May 28 to June 5.

The completion of the Offering and admission of the shares to listing and trading on the Main Market of the ADX is currently expected to take place on June 12, as per the release.

IPO Highlights

● 1.4 billion shares are being made available in IPO, representing 20 per cent of the company’s issued share capital.
● The Internal Shariah Supervision Committee of First Abu Dhabi Bank has issued a pronouncement confirming that, in their view, the Offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the Offering is Shariah compliant for their own purposes.
● The Selling Shareholders reserve the right to amend the size of the Offering at any time before the end of the subscription period subject to applicable laws and the approval of the Securities and Commodities Authority in the UAE.
● Admission of shares to trading on the ADX is anticipated to occur on June 12.

“Having already captured significant market share within the UAE market, with Alef Education providing digital education resources to all public schools and serving approximately 40-50 per cent of the private school market, the increased global education spending dovetails with our well-defined growth strategy. We intend to solidify our market leadership at home and grow our presence across our target markets through continued investment in our digital capabilities, broadening our product offering and expanding our geographic footprint both organically and through strategic M&A,” added Alphonso.

He added, “Our IPO on ADX is an important milestone and natural progression in our journey to maximise our potential and become a global EdTech leader. Supported by our transparent dividend policy, we are committed to delivering strong shareholder returns in both the near and long term, and we look forward to welcoming new shareholders in what is an exciting new chapter for Alef Education.”

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