Abu Dhabi – Mubasher: The initial public offering (IPO) of GEMS Education, a UAE-based international education company, on London Stock Exchange (LSE) has been shelved three sources familiar with the matter said, as reported by Reuters.
Sources familiar with GEMS Education’s IPO noted that LSE listing was delayed after authorities in Dubai unexpectedly decided to freeze tuition fees, therefore, the company’s financial forecasts had to be adjusted.
It is noteworthy that GEMS Education is backed by Blackstone Group, an American multinational private equity, alternative asset management, and financial services firm based in New York City.
“Bankers knew this wouldn’t go ahead as GEMS was unsure about its expansion plans, given that many students were leaving as families were packing up due to job losses,” a banker in the region said, according to Reuters.
Earlierin 2018, bankers said GEMS, which operates over 250 schools across 14 countries, could have a market capitalisation ranging from $4.5 to $5 billion. This could be the biggest IPO in London since July 2017 in terms of market capitalisation.