HomeMarketsEFG Hermes advises on the $204 mn IPO of Dubai’s Taaleem
By Economy Middle East
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November 29, 2022 6:20 pm

EFG Hermes advises on the $204 mn IPO of Dubai’s Taaleem

The first private sector IPO on the DFM since 2014
Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking (Photo credit: EFG Hermes)

EFG Hermes, the investment bank franchise in Frontier and Emerging Markets (FEM), announced that its Investment Banking division completed advisory on the $204 million initial public offering (IPO) of Dubai education provider Taaleem on the Dubai Financial Market (DFM). The firm acted as Joint Lead Arranger and Joint Global Coordinator on the transaction.

Taaleem issued 250 million new ordinary shares, representing 25 percent of its share capital. The shares were priced at the high end of the indicative price range at 3.00 dirhams/share, implying a total market capitalization of 3 billion dirhams. The transaction garnered strong interest from both retail and institutional investors alike, with demand raised reaching 13.7 billion dirhams, implying an oversubscription of 18 times. 

Read more: UAE’s Taaleem IPO begins subscription at AED 2.95-3 per share

Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, said that this is the first private sector IPO on the DFM since 2014. “Over $10 billion has been raised in UAE listings this year, with the government issuing stake sales in numerous state entities to transform into a diversified economy and attract global investor demand, particularly in a market where investors prioritize yield over growth.”

“In 2022, EFG Hermes Investment Banking led some of the largest ECM deals in the GCC, closing nine transactions worth $10.9 billion. In November alone, the company advised on the successful $724 million IPO of Emirates Central Cooling Systems Corporation (Empower) on the DFM. It also closed on the $60.6 million listing of The Pearl Real Estate Investment Fund — the MSX’s largest transaction in the last seven years,” Fahmi added. 

Earlier in the year, EFG Hermes’ Investment Banking division served as joint book runner on the $1 billion listing of Dubai’s exclusive toll-gate operator Salik on the DFM and concluded advisory on Abu Dhabi’s largest ever IPO, the $2 billion listing of Borouge. The division also completed advisory on Ali Alghanim and Sons Automotive Company’s $323 million private placement ahead of its IPO on Boursa Kuwait. It also served as an advisor and joint book runner on the $6.1 billion listing of Dubai utility player DEWA — the largest ever listing in the Middle East since Saudi Aramco’s record share sale and the first-of-its-kind transaction of a public company in Dubai.