Abu Dhabi: Alef Education Holding announced on Friday an increase in the number of shares allocated to the first tranche of its initial public offering (IPO), raising it from 112 million to 140 million shares due to strong investor demand.
The second tranche offer will be adjusted to 1.26 billion shares from the initial 1.28 billion shares. The total number of shares on offer remains at 1.4 billion, representing 20 per cent of the company’s issued share capital.
Based on the previously announced price range of Dh1.30 to Dh1.35 per share, the first tranche offer will now be valued between Dh182 million and Dh189 million, accounting for 10 per cent of the total IPO size.
All shares are existing ones, with Tech Nova Investment – Sole Proprietorship L.L.C. and Kryptonite Investments L.L.C. selling 20 per cent of their ownership in Alef Education.
Post-IPO, the selling shareholders will retain 68 per cent and 12 per cent of the company’s issued share capital, respectively. Under an underwriting agreement with the company, selling shareholders, and joint lead managers, these shares will be subject to a 180-day lock-up period from the date of the underwriting agreement until 180 days after listing on the Abu Dhabi Securities Exchange (ADX).
The IPO subscription period remains unchanged, with the first tranche offer closing on June 4, 2024, and the second tranche offer closing on June 5.
The final offer price will be determined through a book-building process at the close of the second tranche offer, with an announcement expected on June 6.
The completion of the offering and admission of the shares to listing and trading on the main market of the ADX is expected on June 12, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including admission approval from the Securities and Commodities Authority (SCA).
