GEMS Plans USD $5 billion London IPO For 2018

According to sources in the UK, UAE based education group GEMS Education looks set for an IPO sometime in 2018. Sources claim GEMS could raise as much as USD $5 billion.
GEMS Plans USD $5 billion London IPO For 2018
By C Hoppe
Do your children attend a UAE school? Take our survey and help other parents.
WhichSchoolAdvisor's annual school survey.

GEMS Education intends to pursue an initial public offering sometime in 2018 according to sources speaking to the UK financial newspaper, the Financial Times.

The education group has approached four well known investment banks for the offering according to sources close to the matter - Merrill Lynch, J.P. Morgan, Credit Suisse and Morgan Stanley.

Sources speaking to the paper say the IPO could value the company between $4.5 billion to $5 billion. Information on how many shares the company will release, or the flotation share price are not known.

According to its latest published results, the 2017 financial year has seen the company's revenues rise 17.3 percent-year-on-year to $926.2 million.

Adjusted earnings before interest, taxes, depreciation and amortisation grew by 22.9 percent to 261.6 million, compared to 212.8 million the prior year.

Revenue per student also grew to $8,079, a 6.6 percent year-on-year increase that was primarily driven by tuition fee increases, as well as more students in senior years where fees are higher.

In the period GEMS invested $318 million on new schools. The school group has been investing fairly constantly for the last three years. GEMS’ cumulative investment in schools and transport assets since 2014 has totaled over $1 billion. The company has 16 new schools to show for it.  

GEMS has in total 250 schools in 14 countries.

The company recently secured a $1.25bn loan to refinance existing borrowings and support growth.

GEMS Education is partly owned by Fajr Capital, Bahraini state investment fund Mumtalakat and US buyout group Blackstone. It was set up by two Indian teachers – KS Varkey and his wife Mariamma – after arriving in Dubai in 1959.

The banks declined to comment on the IPO. A representative for GEMS was not immediately available to comment.

Latest UAE articles

Festival of Schools, What's on...Where?

As the UAE bounces back post pandemic, it’s time for us all to enjoy events and fam…


Dwight Dubai, Bloom Education to End Collaboration

Dwight School Dubai and Bloom Education have announced that their collaboration will co…

Choosing A School

Why Pick an Independent School in Scotland?

Independent schools in Scotland offer a quality and diversity of education that attracts …


Festival of Schools: The Family Event this Winter!

Which Media is delighted to unveil the “must attend” event for families this …


Podcast, The Importance of School Governors

The first episode of the new season of The School Show podcast sees our host, Whic…


WSA Celebrates Teacher Appreciation Day!

Teachers have had all sorts of challenges thrown their way over the past two years. From …

International Boarding

The Expats Guide to UK State Boarding Schools

It's no secret that UK independent schools welcome international students from count…

Courses & Curricula

What Will GCSEs and A Levels Look Like in 2022?

The 2022 GCSE and A Level exams in England will be adapted to help manage the disruption …

0 Schools Selected
keyboard_arrow_down keyboard_arrow_up
Your selection Clear All