Abu Dhabi’s Alef Education Holding announced on Thursday the successful completion of the bookbuild and subscription process for its Initial Public Offering (IPO) on the Main Market of the Abu Dhabi Securities Exchange (ADX).
In a statement, the company set the Final Offer Price at AED1.35 per Share, at the top end of the previously announced Offer Price Range. This implies a market capitalization of AED9.45 billion ($2.57 billion) at the time of listing and proceeds of AED1.89 billion ($514 million) from the offering.
Significant investor demand and oversubscription
Additionally, the IPO saw significant demand from local, regional, and international investors. The total gross demand amounted to over AED74 billion ($20 billion), representing an oversubscription level of approximately 39x.
Read more: Alef Education sets IPO offer price between AED1.30 and AED1.35 per share
The overwhelming investor demand demonstrates the strength of Alef Education’s industry position, the attractive market opportunity, and the company’s unique investment proposition.
Minimum dividend commitment
Alef Education further expects to pay a minimum dividend of AED135 million for each of the financial years ending 31st December 2024 and 2025 to all shareholders excluding the Selling Shareholders. This implies an annualized minimum dividend yield of 7.1 percent based on the Final Offer Price.
The company’s shares are anticipated to begin trading on the ADX on or around 12th June 2024.
Moreover, Geoffrey Alphonso, Alef Education’s chief executive officer, commented, “The 39x oversubscription in our IPO reflects the appeal of our Offering and 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.”
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