Taaleem Holdings, one of the largest K-12 premium education providers in the UAE with a portfolio consisting of 26 schools, today announced the price range and start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM).
Alan Williamson, Chief Executive Officer of Taaleem, said: “We have seen strong interest in our IPO since announcing our Intention to Float on 31 October 2022. Today, we are pleased to open subscriptions for all retail investors, professional investors and our school community through the parents and employees tranche.
"Taaleem has delivered a solid growth story for nearly 20 years with particularly strong revenue and EBITDA growth between 2020 and 2022. Additionally, the AED750 million ($204.19 million) proceeds from this IPO will help fund and accelerate the expansion of our K-12 premium schools network in the UAE and we will be even better positioned to provide greater access to our high-quality, aspirational education offering.”
The price range for the offering has been set at between AED2.95 and AED3 per share, implying a market capitalisation at time of listing of between AED2.962 billion and AED3 billion. The final offer price is expected to be announced on November 18. Listing of the shares and trading on DFM is expected to commence on November 29, 2022.
The price range implies the issuance of a total of 254,237,288 new shares, representing 25.32% of Taaleem’s share capital, at a price of AED2.95 per share, and a total of 250,000,000 new shares, representing 25% of Taaleem’s share capital, at a price of AED3 per share.
The company is seeking to raise total capital of AED750 million. The final offer price will be determined through the application of a book building process, whereby a subscription orders ledger will be created through the subscription orders made only by professional investors. The offering consists wholly of primary shares – those being newly issued shares in the company, for the purpose of the IPO – with the company’s intention to use the net proceeds from the offering to expand its premium K-12 segment.
There are three broad groups of eligible investors. Each group can subscribe through their respective tranche:
• First Tranche: The First Tranche offer will be made pursuant to the prospectus. 10% of the offer shares of the company are allocated to the First Tranche, which is restricted to individuals with a valid DFM National Investor Number (NIN) and UAE bank account number.
• Second Tranche: 88% of the offer shares are allocated to the Second Tranche, which is restricted to Professional Investors.
• Third Tranche: 2% of the offer shares are allocated to the Third Tranche, which is restricted to eligible employees and eligible parents. All Third Tranche subscribers must hold a NIN with DFM.
Further, as part of the Second Tranche, and in accordance with the UAE Companies Law, 5% of the offering will be reserved for offer to the Emirates Investment Authority. -TradeArabia News Service