Alef Education, a UAE-based global leader in education technology, has been added to the MSCI UAE Small Cap Index, a significant milestone achieved just five months after its IPO. The inclusion underscores the solid financial and operational performance of Alef Education and its promising growth prospects.
MSCI confirmed the inclusion in its latest list of additions and deletions, with the change to take effect after the close of equity markets on November 25, 2024. The inclusion holds further significance as it comes more than a week after Alef Education announced robust financial results for the period ending September 30, 2024. The company reported an 8 percent increase in adjusted profit before tax to AED379 million, driven by a solid revenue base from long-term contracts and a focus on significant cost efficiencies across its operations.
Read: How Alef Education shapes the future of learning in MENA
Diversify investor base
“We are delighted to be included in the MSCI UAE Small Cap Index as it reflects the global market’s confidence in our strong fundamentals and strategic vision. This achievement emphasizes our commitment to providing innovative education solutions and our dedication to sustainable growth and value creation for our shareholders. This milestone will allow Alef Education to diversify its investor base and make its solid financial foundation and high shareholder returns visible on the global financial market. At Alef Education, we reaffirm our commitment to driving effective change and shaping the future of education through progressive, technology-driven approaches,” Geoffrey Alphonso, CEO of Alef Education.
Morgan Stanley Capital International (MSCI) is an investment research firm that provides stock indexes, portfolio risk and performance analytics, and governance tools to institutional investors and hedge funds. The MSCI UAE Small Cap Index is designed to measure the performance of the small-cap segment of the equity market. MSCI indices are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
Alef Education, an AI-powered learning solutions provider, operates in approximately 7,000 schools across the UAE, the US, Indonesia and Morocco. Its flagship AI-integrated Alef Platform offers personalized learning experiences to more than 1.1 million registered students.
Successful IPO
Shares of Alef Education Holding plc began trading on the Abu Dhabi Securities Exchange (ADX) in June, marking the introduction of the first EdTech company on the ADX and the first company to go public on the exchange in 2024.
Alef Education shares began trading following the successful public offering, which raised AED1.89 billion through the sale of 1.4 billion shares, or 20 percent of the company, at AED1.35 per share. At the time of listing, the group’s market capitalisation was AED9.45 billion.
The group’s IPO met with robust demand from investors. The offering was 39x oversubscribed, even after the retail tranche was increased from 8 percent to 10 percent.
