EFG Hermes Advises On $515M IPO Of Alef Education, 1St UAE Edtech Listing

(MENAFN- Daily News Egypt)

EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA), announced Wednesday the successful completion of its advisory role on the $515m initial public offering (IPO) of Alef Education Holding (Alef Education) on the Abu Dhabi Securities Exchange (ADX).

This marks the first-ever listing of an education technology company in the UAE.

EFG Hermes acted as Joint Global Coordinator and Joint Bookrunner on the transaction, which saw Alef Education offer 20% of its total issued share capital through the sale of 1.4 billion existing shares. The offering was priced at AED 1.35 per share, implying a market capitalization of AED 9.45bn ($2.6bn).

The IPO attracted substantial demand from local, regional, and international investors, with the total book covers approximately 39 times. The company's shares began trading today under the ticker [AlefEdT].

Mostafa Gad, Global Head of Investment Banking at EFG Hermes, emphasized the significance of the IPO, stating,“The IPO of Alef Education on the ADX is a landmark achievement, marking our first Joint Global Coordinator role on an IPO on the ADX and representing the first tech listing in the UAE with a public offering. The overwhelming demand for Alef Education's shares underscores the company's compelling equity story and significant growth potential, as recognized by a diverse group of investors.”

Alef Education is an award-winning provider of AI-powered personalized learning solutions and digital education resources for students, teachers, and schools across grades K-12. The company has a proven track record of enhancing student performance and serves 1.1 million students, 50,000 teachers, and 7,000 schools as of 2023.

With consistent profitability, a strong balance sheet, and long-term contracts, Alef Education is well-positioned for future growth. The company operates in the UAE, Indonesia, and the US, employing both organic and inorganic growth strategies to capitalize on the expanding EdTech sector.

This IPO is the latest in a series of landmark transactions advised by EFG Hermes in the GCC region. The investment banking division has been involved in 10 ECM deals in 2024 so far, including the private placement of Beyout Investment Group (BIG) on Boursa Kuwait and the secondary public offering of Saudi Aramco on the Saudi Exchange.

The team also recently acted as a joint financial advisor, bookrunner, and Underwriter on Miahona's IPO, and as a joint bookrunner and underwriter on the IPO of healthcare provider Fakeeh Care Group on the Saudi Exchange. Additionally, EFG Hermes played a role in the Accelerated Equity Offering for ADNOC Drilling and served as a joint bookrunner on the IPOs of Spinneys and Parkin's on the Dubai Financial Market (DFM).


Daily News Egypt

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