UAE – Mubasher: Alef Education Holding has increased the size of the first tranche of its initial public offering (IPO) due to substantial investor demand.

Following approval from the UAE's Securities and Exchange Authority (SCA), the selling shareholders, Tech Nova Investment – Sole Proprietorship, and Kryptonite Investments, have exercised their right to increase the first tranche offering from 112 million shares to 140 million shares, according to a press release.

As a result, the second tranche offering has been reduced from 1.28 billion shares to 1.26 billion shares, while the total IPO size remains unchanged.

Based on the previously announced price range of AED 1.30 to AED 1.35 per share, the first tranche offering is now valued between AED 182 million and AED 189 million.

Following the completion of the IPO, the selling shareholders will continue to hold 68% and 12% stakes respectively in Alef Education. Their remaining shares will be subject to a 180-day lock-up period.

The lock-up period is a predetermined amount of time following the IPO during which insiders, such as company executives, employees, and other pre-IPO investors, are restricted from selling their shares.

Moreover, Alef Education's IPO subscription period remains unchanged, with the first tranche offer closing on 4 June 2024, and the second tranche offer closing on 5 June.

The final offer price is expected to be announced on 6 June, and the listing on the Abu Dhabi Securities Exchange (ADX) is currently scheduled for 12 June, subject to regulatory approvals.

In May, Alef Education Holding unveiled plans to list 1.40 billion shares, representing 20 of capital, on the main market of the ADX.