Dubai – Mubasher: Dubai-based GEMS Education is planning to raise over $1 billion to refinance some of its current debt before launching its initial public offering (IPO) in London, Reuters reported late Sunday, citing unnamed sources as saying.
The international education company will likely call on bank proposals by the end of October, the sources said, highlighting that the loan may reach $1.2 billion.
They further revealed that the new loan was likely to be held by UAE banks and be “split into conventional and Islamic tranches.”
With over 250 schools in operation spread out across 14 countries, GEMS previously said it was looking to “reshuffle some of its existing borrowings in preparation for its foreign IPO,” according to Reuters.
“They’re streamlining their corporate structure,” a banker told the news agency.
In June, Bloomberg reported that GEMS was planning to launch an IPO in London in early 2018, noting that the company’s IPO may fetch a valuation of around $4 billion.
In 2016, the Dubai-based education provider raised a $250 million three-year loan, after having borrowed AED 3 billion ($817 million) in 2015.
GEMS is backed by Dubai-based Fajr Capital, Bahrain’s state investment fund Mumtalakat, and US-based private equity giant Blackstone.
