Abu Dhabi edtech firm Alef’s IPO draws $20bn in orders

Abu Dhabi-based Alef Education said on Thursday that it had attracted $20bn (Dhs74bn) in orders for its initial public offering (IPO) on the local bourse, amid strong investor appetite for listings in the GCC region.

Alef’s shareholders – Tech Nova Investment – Sole Proprietorship and Kryptonite Investments – priced the IPO at the top of the range, selling its shares at Dhs1.35 apiece to raise $514m (Dhs1.89bn).

The pricing implies a market valuation of around $2.57bn (Dhs9.45bn) at listing. The offer was 39 times covered by local, regional, and international investors, the edtech firm said in a statement.

“Global and regional investors alike have come to recognise the significant and integral role we play – and will continue to play–in the education sector across our operating markets,” said Geoffrey Alphonso, the CEO of Alef Education.

“The 39x oversubscription 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 shareholders are offering 1.4 billion shares, equivalent to 20 per cent of the company’s total issued share capital.

Upon listing, Tech Nova Investment – Sole Proprietorship and Kryptonite Investments will continue to own 68 per cent and 12 per cent shareholding, respectively. Alef plans to pay investors a dividend of at least Dhs135m for this year and 2025.

Founded in 2016 and indirectly majority-owned by Abu Dhabi Capital Group, Alef Education serves the kindergarten to 12th grade sector. It operates in countries including the UAE, Indonesia, Morocco and the US and plans to expand both organically and inorganically.

First Abu Dhabi Bank and EFG Hermes are the joint global coordinators on the offering.

The edtech firm’s IPO follows the Dubai listing of private school operator Taaleem Holdings in 2022. It comes as Amanat Holdings is considering options for its education platform, including an IPO.

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