EFG Hermes announced today that its Investment Banking division completed an advisory on the $204m initial public offering (IPO) of Dubai education provider Taaleem on the Dubai Financial Market (DFM). The firm acted as joint lead arranger and joint global coordinator on the transaction.
Taaleem issued 250m new ordinary shares, representing 25% of its share capital. The shares were priced at the high end of the indicative price range at AED 3.00/share, implying a total market capitalisation of AED 3bn.
The transaction garnered strong interest from both retail and institutional investors alike, with demand raised reaching AED 13.7bn, implying an oversubscription of 18x. The company began trading on Tuesday under the ticker TAALEEM.
Mohamed Fahmi — EFG Hermes’ Co-Head of Investment Banking — commented: “We are excited to have closed on the first private sector IPO on the DFM in recent memory, which required significant marketing capabilities to showcase Taaleem against multiple government-backed listings in the GCC. Over $10bn have been raised in UAE listings this year, with the government issuing stake sales in numerous state entities to transform into a diversified economy and attract global investor demand, particularly in a market where investors prioritise yield over growth.”
“Our unparalleled track record allowed us to create strong allocable demand from global institutional investors looking to capitalise on Taaleem’s attractive investment proposition and mobilise capital for social impact and overall development of the vital education sector.”
Taaleem is one of the largest K-12 premium education providers in the UAE, holding, as of August 2022, a portfolio of 26 schools — 10 owned and operated premium private schools, including one private early-years facility, and 16 government-partnership schools. For the 2022/23 academic year, its student base stands at 27,407 with a teaching staff of 1,721 teachers.
The company intends to use the proceeds from the offering to expand its premium K-12 segment through the potential roll-out of four new premium schools in Dubai and Abu Dhabi to meet the growing demand for high-quality K-12 education in the UAE.
“The transaction follows on the heels of the team’s recent successful closing on several key IPOs. In 2022, EFG Hermes Investment Banking led on some of the largest ECM deals in the GCC, closing nine transactions worth $10.9bn. In November alone, the team advised on the successful $724m IPO of Emirates Central Cooling Systems Corporation (Empower) on the DFM,” Fahmi added.
“It also closed on the $60.6m listing of the Pearl Real Estate Investment Fund — the MSX’s largest transaction in the last seven years. We’re incredibly proud of the strides we’ve taken to cement our position as the advisory partner of choice when it comes to ECM transactions in the GCC, and we look forward to closing on the strong pipeline of deals we have lined up in the region.”