- The first private sector IPO on the DFM since 2014, the listing in the vital education sector feeds tomorrow’s generations and represents a key opportunity in impact investing.
- The listing follows a number of successful and noteworthy ECM transactions the company has closed in the GCC this year.
Dubai: EFG Hermes, the leading frontier and emerging market (EMF) investment banking franchise, today announced that its investment banking division has completed advisory on the initial public offering (IPO) of 204 million dollars from Dubai education provider Taaleem to the Dubai Financial Market (DFM). The company acted as Joint Lead Arranger and Joint Global Coordinator in the transaction.
Taaleem issued 250 million new ordinary shares, representing 25% of its share capital. The stock was priced at the higher end of the indicative price range at AED 3.00/share, implying a total market capitalization of AED 3 billion. The transaction attracted strong interest from both retail and institutional investors, with increased demand reaching AED 13.7 billion, representing an 18-fold oversubscription. The company began trading today under the ticker TAALEEM.
Mohamed Fahmi, Co-Head of Investment Banking at EFG Hermes, commented: “We are delighted to have closed 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 More than $10 billion has been raised in UAE listings this year, with the government issuing stake sales in numerous state-owned entities to transform itself into a diversified economy and attract global investor demand, especially in a market where investors prioritize yield over growth. An unmatched track record has enabled us to create strong allocable demand from global institutional investors looking to capitalize on Taaleem’s attractive investment proposition and mobilize capital for the social impact and global development of the vital education sector.”
Taaleem is one of the largest K-12 premium education providers in the UAE with, as of August 2022, a portfolio of 26 schools: 10 owned and operated premium private schools, including a private facility of first years and 16 government collaboration schools. . For the 2022-2023 academic year, its student base was 27,407, with a faculty of 1,721 teachers. The company intends to use the proceeds of the offering to expand its premium K-12 segment through the potential deployment of four new premium schools in Dubai and Abu Dhabi to meet the growing demand for K-12 education high quality in the United Arab Emirates. .
“The transaction follows the team’s recent successful close on several key IPOs. In 2022, EFG Hermes Investment Banking led some of the largest ECM deals in the GCC, closing nine transactions worth $10.9 billion. In 2022 alone November, the team advised on the successful $724 million IPO of Emirates Central Cooling Systems Corporation (Empower) to DFM.It also closed on the $60.6 million listing of The Pearl Real Estate Investment Fund , the largest transaction on the MSX in the past seven years.We are incredibly proud of the progress we have made in cementing our position as the preferred advisory partner for ECM transactions in the CCG, and look forward to closing with the strong channel of agreements we have lined up in the GCC region,” Fahmi added
Earlier this year, EFG Hermes’ investment banking arm acted as joint lead on the $1bn listing of Dubai’s exclusive toll operator Salik on the DFM, concluding advice on Abu Dhabi’s largest IPO, Borouge’s listing for $2 billion. The division also completed advising on the $323 million private placement of Ali Alghanim and Sons Automotive Company ahead of its IPO on Boursa Kuwait. He also served as advisor and joint book-runner on the $6.1 billion listing of Dubai utility DEWA, the largest-ever listing in the Middle East since the record-breaking share sale of Saudi Aramco and the first such transaction by a public company in Dubai.
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About EFG Hermes Holding
With a current footprint spanning 14 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 38 successful years to transform itself from a pure investment bank in MENA to a universal bank driven by impact. in Egypt with the leading Frontier and Emerging Markets (FEM) investment banking franchise. Building on our proven track record and a diverse team of talented employees, we offer a broad spectrum of financial services, including advisory, asset management, stockbroking, research and private equity, across the FEM region. In our home country, we have the fastest growing Non-Banking Financial Institutions (NBFI) platform, with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, financing mortgage and insurance.
And with its latest acquisition of a majority stake in aiBANK, the firm was able to offer commercial banking products and services.
Through its three verticals, Investment Banking, Non-Banking Financial Institutions (NBFIs) and Commercial Banking, the group is perfectly positioned to consistently bring disruptive financial products and services to market, offering a holistic portfolio that serves better to its growing base. of private customers and companies of all sizes.
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Oman | Jordan | Pakistan | United Kingdom | Kenya | USA | Bangladesh | Nigeria | Vietnam | singapore
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Note on forward-looking statements
In this press release, EFG Hermes Holding may make forward-looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but represent only EFG Hermes Holding’s belief regarding future events, many of which, by their nature, are inherently uncertain and beyond management’s control and include, but are not limited to, the volatility of financial markets; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.