Alef Education Holding, a UAE-based education technology company, plans to list its shares on the Abu Dhabi Securities Exchange as it seeks to boost its domestic business and expand its international footprint.
Alef will sell 1.4 billion shares, or 20 per cent of the company's issued share capital, through an initial public offering on the main bourse of the ADX, it said on Monday.
All shares being offered in the public float are held by existing shareholders Tech Nova Investment and Kryptonite Investments. The selling shareholders reserve the right to amend the size of the offering.
UAE retail and institutional investors will be able to subscribe to the public float through separate tranches.
The subscription period for retail and qualified investors will begin on May 28.
The first tranche, for retail investors, will close on June 4 while the second, for qualified institutional investors, will conclude on June 5, the company said.
Retail investors will be able to subscribe to 8 per cent, or 112 million shares, of the total share capital on offer while the institutional tranche will comprise 92 per cent, or 1.28 billion shares.
Alef expects its shares to start trading on the ADX on June 12, subject to regulatory approvals.
“Our IPO on ADX is an important milestone and natural progression in our journey to maximise our potential and become a global EdTech [education technology] leader,” Alef chief executive Geoffrey Alphonso said.
“We intend to solidify our market leadership at home and grow our presence across our target markets through continued investment in our digital capabilities, broadening our product offering and expanding our geographic footprint – both organically and through strategic M&A [mergers and acquisitions].”
Markets in the Mena region have recorded strong listing activity this year amid increasing investor interest and a public mandate aimed at supporting IPOs to boost liquidity in local bourses.
In the GCC, 10 companies have tapped equity markets for funds, raising a combined $1.2 billion in proceeds in the first quarter of this year, according to PwC's quarterly IPO Watch report.
The intention to float shares by Alef is the latest among companies lining up to list in the UAE amid a sustained economic momentum.
Markets in Abu Dhabi and Dubai have experienced strong listing activity over the past few years.
Companies in Dubai raised Dh34.5 billion ($9.4 billion) by selling shares over the past three years, with aggregate investor demand for those listings reaching more than Dh1 trillion, the Dubai Securities and Exchange Higher Committee said in March.
Dubai's parking operator Parkin and retailer Spinney's are the latest businesses to float IPOs in the emirate, where the government is pursuing plans to list 10 state-owned companies and establish a Dh2 billion marketmaker fund to encourage listings by private companies in sectors such as energy, logistics and retail.
In Abu Dhabi, Adnoc Gas, Investcorp Capital and the UAE's largest health care operator, Pure Health, are among the companies that have floated shares last year.
Alef is indirectly majority owned by Abu Dhabi Capital Group, a private institutional investment company that has a multi-asset class portfolio across the Mena region.
The company provides artificial intelligence-powered learning and digital education resources to schools in the UAE, Jordan, Indonesia, Morocco and the US.
Its platform serves about 7,000 schools, with about 1.1 million registered students and 50,000 teachers.
The company is pursuing both organic and inorganic growth strategies and looking to expand in markets closer to home, Mr Alphonso said on Monday.
“We have categorised the focus for the firm over the next few years … close to the home market, which we feel are around the neighbouring GCC,” he said.
“We put boots on the ground in Saudi, we've had some great interaction in Qatar [and] there's still a lot of work to do here in the UAE.”
The company is also open to accretive acquisition and has a robust mergers and acquisitions pipeline, he said.
“We do have plans to close one to two, accretive M&A this year which will complement the business and help us fulfil our growth ambitions,” he said.
First Abu Dhabi Bank and EFG Hermes UAE have been appointed as joint lead managers and joint bookrunners on the deal.
FAB has also been appointed as lead receiving bank alongside Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Al Maryah Community Bank, the receiving banks for the retail investor tranche.
Alef, whose revenue for the 12-month period ending in December last year stood at Dh750 million, has a long-standing contract with the Abu Dhabi Department of Education and Knowledge, which provides “significant revenue visibility and predictability over the next seven years”.
Such long-dated contracts enable the education technology company to “pursue growth initiatives and deliver value to shareholders”, it said.
8 UAE companies helping families reduce their carbon footprint
Greenheart Organic Farms
This Dubai company was one of the country’s first organic farms, set up in 2012, and it now delivers a wide array of fruits and vegetables grown regionally or in the UAE, as well as other grocery items, to both Dubai and Abu Dhabi doorsteps.
www.greenheartuae.com
Modibodi
Founded in Australia, Modibodi is now in the UAE with waste-free, reusable underwear that eliminates the litter created by a woman’s monthly cycle, which adds up to approximately 136kgs of sanitary waste over a lifetime.
www.modibodi.ae
The Good Karma Co
From brushes made of plant fibres to eco-friendly storage solutions, this company has planet-friendly alternatives to almost everything we need, including tin foil and toothbrushes.
www.instagram.com/thegoodkarmaco
Re:told
One Dubai boutique, Re:told, is taking second-hand garments and selling them on at a fraction of the price, helping to cut back on the hundreds of thousands of tonnes of clothes thrown into landfills each year.
www.shopretold.com
Lush
Lush provides products such as shampoo and conditioner as package-free bars with reusable tins to store.
www.mena.lush.com
Bubble Bro
Offering filtered, still and sparkling water on tap, Bubble Bro is attempting to ensure we don’t produce plastic or glass waste. Founded in 2017 by Adel Abu-Aysha, the company is on track to exceeding its target of saving one million bottles by the end of the year.
www.bubble-bro.com
Coethical
This company offers refillable, eco-friendly home cleaning and hygiene products that are all biodegradable, free of chemicals and certifiably not tested on animals.
www.instagram.com/coethical
Eggs & Soldiers
This bricks-and-mortar shop and e-store, founded by a Dubai mum-of-four, is the place to go for all manner of family products – from reusable cloth diapers to organic skincare and sustainable toys.
www.eggsnsoldiers.com
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
UAE currency: the story behind the money in your pockets
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
More from Rashmee Roshan Lall
How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Company Profile
Founder: Omar Onsi
Launched: 2018
Employees: 35
Financing stage: Seed round ($12 million)
Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
THE SPECS
Engine: 1.5-litre, four-cylinder turbo
Transmission: seven-speed dual clutch automatic
Power: 169bhp
Torque: 250Nm
Price: Dh54,500
On sale: now
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Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
