Shares of Dubai school operator Taaleem Holdings declined on market debut, which is rare for initial public offerings (IPOs) in the region.
Taaleem shares plunged by 14.7% to AED2.56 ($0.7) around 2:35 PM GST. The company sold shares at AED3 ($0.8) apiece to raise $204 million. The school operator has attracted $3.7 billion in investor orders and priced the offering at the top of the price range.
The private school operator runs 26 schools across the country, offering British and American curricula and the International Baccalaureate. Founded in 2004, Taaleem is considered the second largest premium school operator in the UAE, according to its prospectus. The group primarily operates in Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah.
The company's revenue grew at a compound annual growth rate (CAGR) of 13.4% and EBITDA at a CAGR of 23.6% between the 2020 fiscal year and 2022 fiscal year.
However, the UAE expects more IPOs, with several companies lined up next year. High oil prices and strong investor appetite in the region led governments in the Gulf region to encourage state-run companies and family-owned ones to go public.
The last share to fall on its trading debut in Dubai was business park operator Tecom Group in July, dropping 17%. The last listing in Dubai, Dubai Electricity & Water Authority (DEWA), increased by 20% on its first day of trading.
The Middle East and North Africa (MENA) region saw 21 IPOs with a total amount of $7.9 billion last year, a 133% year-on-year surge in terms of the number issuances and a 325% rise in total proceeds, according to the EY MENA IPO Eye Q4 2021 report released in March.
