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Saturday, November 19, 2022

Gulf News - Dubai school operator Taaleem's IPO raises Dh750m, over-subscribed 18 times

By Century Financial in Century in News

Gulf News - Dubai school operator Taaleem's IPO...
Vijay Valecha, Special to Gulf News November 19, 2022

Dubai: The Dubai school operator Taaleem Holdings, which has set its IPO price at Dh3, has raised Dh750 million. And in the process hit an oversubscription level of 18 times.

“I’m delighted our IPO saw such strong demand from both local and international investors," said Alan Williamson, CEO of Taaleem. "This is a testament to the quality of our company and the hard work and dedication of all our teachers and employees."

The company incidentally set aside 2 per cent for parents who have children at its schools. ​“We are delighted with the strong interest shown in owning shares in Taaleem by our parents and employees through this preferential tranche offering," the CEO added. "This vote of confidence from our community is testament to their faith in our company; it is also an enthusiastic and emphatic endorsement of our future plans to continue to deliver the highest quality of education in the region.”​​​​​​

Taaleem’s market capitalization on listing would be around Dh3 billion, 'making it the largest and only dedicated education provider on DFM at the time of listing'. The IPO proceeds will be used to expand on the company's K-12 premium education network, 'providing further opportunities for students in the UAE to access our high-quality education offering'.

The stock market float raised 'significant demand from investors in the UAE and internationally'. Total demand came to over Dh13.7 billion, implying the over-subscription rate of 18 times.

A 25% FLOAT

The IPO resulted in the issuance of 250 million new ordinary shares, or equal to 25 per cent of Taaleem’s total issued share capital. As this is a primary offering, the net proceeds will go to the company, upon settlement.

Taaleem existing shareholders include National Bonds and Al Mal Capital.

The shares will list on DFM November 29.

It's been a busy few weeks for UAE's stock markets, with Bayanat AI off to a stupendous start on ADX and hitting daily gains of around 15 per cent this week. On DFM, newly listed Empower has had a solid start, generating sizeable traded volumes in the process. After Taaleem, all eyes will be on Americana Restaurants, which has its subscription open. Listing will see Americana up on the ADX and Saudi Tadawul boards.

It may not end there - market sources remain expectant about another IPO coming off the ranks before the year is out. "The liquidity is there as is proved again and again by the succession of IPOs that have come to market," said an analsyt. "These companies have shown the track record and have impressed investors. And their near-term plans will only solidify their positions."

The guessing game is back as to which entity in Dubai or Abu Dhabi will place its hat in the IPO ring...

ANOTHER HIGH IN DUBAI'S IPO STORY

"Formerly Beacon Education, Taleem was founded in Dubai in 2004. Currently, it operates 26 schools in the UAE, providing more than 27,000 students with IB as well as British and American curriculums.

Total gross demand for the offering amounted to over Dh13.7 billion, implying an over-subscription level of 18 times. Taleem’s IPO is Dubai's fifth of the year, an achievement as major developed markets have seen their primary markets drying up. It is the most recent in a succession of Gulf IPOs that have bucked market trends in the face of increased liquidity from high oil prices, inflation that is relatively low compared to other regions, strong investor demand, and a lack of equity offers elsewhere said Vijay Valecha, Chief Investment Officer at Century Financial

Source:
Gulf News