Taaleem IPO subscription opens at Dh2.95-Dh3 per share

Dubai-based school operator Taaleem Holdings, which is seeking to raise Dh750 million through an initial public offering, opened its subscription on Thursday at a price range of Dh2.95-Dh3 per share.

The company said it plans to list up to 25.32 per cent of its share capital with the set price range, implying a market capitalization of between Dh2.962 billion and Dh3 billion at the time of listing.

Taaleem, a leading K-12 education provider with a portfolio consisting of 26 schools, said it intends to use the net proceeds from the offering to expand its premium school network.

Alan Williamson, chief executive officer of Taaleem, said the Dh750 million proceeds from this IPO will help fund and accelerate the expansion of the company’s K-12 premium schools network in the UAE and will better position it to provide greater access to high-quality, aspirational education offering.

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“We have seen strong interest in our IPO since announcing our Intention to Float on October 31. Today, we are pleased to open subscriptions for all retail investors, professional investors and our school community through the parents and employees tranche.”

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.

There are three broad groups of eligible investors. Each group can subscribe through their respective tranche.

The first tranche offer, consisting of 10 per cent of the offer shares, is restricted to individuals with a valid DFM National Investor Number and UAE bank account number. The second tranche offer, comprising 88 per cent of the offering, is restricted to professional investors. The third tranche, comprising 2.0 per cent, is allocated to eligible employees and eligible parents. As part of the Second Tranche, 5.0 per cent of the offering will be reserved for offer to the Emirates Investment Authority.

The offer period started on November 10, and is expected to close on November 16 in respect of the first and third tranche, and on November 17for the second tranche.

EFG Hermes UAE and Emirates NBD Capital have each been appointed as joint lead managers. Emirates NBD Bank has been appointed as the lead receiving bank. Emirates Islamic Bank and Abu Dhabi Islamic Bank PJSC have also each been appointed as a receiving bank.

— issacjohn@khaleejtimes.com

• Business