Dubai-based school service provider Taaleem joins series of IPOs in the Middle East

Dubai-based private school operator Taaleem Holdings PJSC plans to raise up to $204 million in an initial public offering, the latest in a chain of new equity sales in the Middle East.

Taaleem Holdings PJSC has set a price range of AED2.95 ($0.80) to AED3 per share, according to figures released Thursday. It plans to sell up to 254.2 million shares, or about 25.32% of the shares, of which 5% is held as a reserve for Emirates Investment Authority.

Taaleem’s IPO is one of the few private sector listings in the United Arab Emirates that has been dominated by state-owned company transactions this year. The company operates 26 schools across the country offering British and American curricula as well as the International Baccalaureate.

Parents in the UAE spend quite a lot of money on the education of their children, which contributes to the glut of private schools. Dubai’s emergence as a haven in the wake of the COVID-19 pandemic has attracted expatriates to the emirate, helping to support demand.

Taleem wants to use the IPO proceeds primarily to open four new premium schools in Dubai and Abu Dhabi. The company intends to maintain dividends at current levels and increase payouts in line with future earnings growth.

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Taleem joins other companies seeking to enter the Middle East market. Rising oil prices at the beginning of the year, as well as a growth in the influx of traders and investors, led to an increase in listings in the region, which in the first half of the year showed the best result for debuts on the stock market.

Dubai-based Emirates Central Cooling Systems Corp. received $34 billion in orders for its $724 million offer on Wednesday, and Americana Restaurants International Plc, the Middle East operator of KFC and Pizza Hut restaurants, is also listing.

Share subscription for Taaleem’s IPO kicks off on November 10, the final price will be announced on November 18, and the company’s Dubai debut will take place on November 29. The lead placement managers are EFG-Hermes and Emirates NBD Capital.