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Alef Education, which is floating 20% of its share capital in an initial public offering (IPO), has set the offer price range between 1.30 ($0.35) UAE dirhams and AED 1.35 per share, potentially raising as much as AED 1.89 billion ($515 million) at the top of the price range.
The range implies a market capitalisation at listing of between AED 9.10 billion ($2.48 billion) and AED 9.45 billion ($2.57 billion), the Abu Dhabi-based edtech firm said.
The final offer price will be determined after the book-building process, followed by the listing on the ADX around 12 June.
The IPO subscription period starts on Tuesday and runs until 4 June for individual investors (first tranche) and until 5 June for professional investors (second tranche).
All the 1.4 billion shares to be offered are held by Tech Nova Investment – Sole Proprietorship L.L.C and Kryptonite Investments L.L.C.
Alef expects to distribute a minimum dividend of AED 135 million with respect to each of its financial years ending 31 December 2024 and 2025 to all shareholders, other than the selling shareholders, implying a dividend yield of approximately 7.42% at the bottom of the price range.
Alef Education is indirectly owned by Abu Dhabi Capital Group, a private institutional investment group.
(Writing by Brinda Darasha; editing by Bindu Rai)
