Alef Education Holding has announced the price range and commencement of the subscription period for its initial public offering (IPO) on the main market of the Abu Dhabi Securities Exchange (ADX). In a statement today, the company said that the offer price range has been set between AED1.30 and AED1.35 per share. Moreover, it stated that the IPO subscription period starts today, May 28, 2024.
Offering size
Alef Education is offering 1.4 billion shares, each with a nominal value of AED0.01. This represents 20 percent of the company’s issued share capital. Alef Education expects the total offering size to be between AED1.82 billion ($496 million) and AED1.89 billion ($515 million). This implies a market capitalization at the time of listing between AED9.10 billion ($2.48 billion) and AED9.45 billion ($2.57 billion).
Tech Nova Investment – Sole Proprietorship LLC and Kryptonite Investments LLC currently hold all the offered shares. These entities reserve the right to adjust the size of the offering before the end of the subscription period. However, this is subject to applicable laws and approval from the Securities and Commodities Authority (SCA).
Dividend distribution
Alef Education expects to distribute a minimum dividend of AED135 million to shareholders for the financial years ending December 31, 2024, and December 31, 2025. This translates to a dividend yield of approximately 7.42 percent at the top of the price range and around 7.14 percent at the bottom of the price range.
Read: Dubai’s IPO boom positions city as thriving hub for capital markets: Report
Subscription period
The Alef Education IPO subscription period starts today, May 28, and should close on June 4, 2024, for individual investors and June 5, 2024 for professional investors.
Following the book-building process, the company will set the final offer price and announce it on June 6, 2024. Investors expect the admission of shares for trading on the ADX on or around June 12, 2024.
“We look forward to announcing the final offer price next week and are excited to welcome new shareholders as we embark on our next phase of growth,” stated Geoffrey Alphonso, CEO of Alef Education.
Notably, the offering complies with Shariah principles. Hence, the Internal Shariah Supervision Committee of First Abu Dhabi Bank PJSC has issued a pronouncement confirming this compliance.
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