Alef Education Plans IPO on Abu Dhabi Securities Exchange

Alef Education, headquartered in Abu Dhabi, disclosed its plan to offer 20% of its share capital in an initial public offering (IPO). Following this move, the company aims to list its shares on the Abu Dhabi Securities Exchange (ADX).

All 1.4 billion shares set for the offering are currently held by Tech Nova Investment, Sole Proprietorship L.L.C., and Kryptonite Investments L.L.C.

Indirectly owned by Abu Dhabi Capital Group, a private institutional investment group, Alef Education specializes in AI-powered and personalized learning solutions, catering to students from kindergarten to grade 12 across various educational institutions in the UAE and beyond, including markets like Indonesia and the US.

The IPO is structured to unfold in two tranches, with the first tranche, encompassing 8% of the total sale, available for individual investors from May 28th to June 4th, 2024. Subsequently, the second tranche, comprising the remaining 92%, will be offered to professional investors from May 28th to June 5th, 2024.

The company stated that the price range for the offer will be unveiled on May 28th, with the final price being determined on June 6th.

Moreover, Alef Education has pledged a minimum dividend payout ratio of 90% of the net profit generated for the financial years 2024 and 2025.

Alef Education has approximately 1.1 million registered students, 50,000 teachers, and 7,000 schools as of 2023.

First Abu Dhabi Bank PJSC and EFG Hermes UAE Limited, both serving as joint lead managers and joint book-runners.

The idea for Alef Education was born in 2016 as a technology-enabled education concept developed to meet the needs of the public school system in the UAE. Alef has offices in the US, Indonesia, and Jordan.