Alpha Data Goes Public: UAE's First IPO
Alpha Data Goes Public in 2025: UAE's First IPO
The United Arab Emirates (UAE) technology sector is gearing up for an important event: Alpha Data, one of the country's leading digital transformation service providers and system integrators, has announced its intention to go public in 2025. This will be the first Initial Public Offering (IPO) in the UAE in 2025, marking a significant milestone in the company's history. The company's shares will be listed on the Abu Dhabi Securities Exchange (ADX), and preparations are already in full swing.
Share Pricing and Offering Details
Alpha Data is offering 400 million shares with a nominal value of 0.03 UAE dirham (Dh) each. The share price will be determined through a book-building process based on investor demand. During the offering, current shareholders, Bin Hamoodah Company and Ibbini Investment Company, will sell the shares and reserve the right to modify the offering size, subject to approval by the Securities & Commodities Authority.
The subscription period starts on February 20, 2025, and ends on February 25. Both retail and professional investors will have the opportunity to purchase shares. The shares are expected to begin trading on the ADX in March 2025.
Company Goals and Strategies
The founder and CEO of Alpha Data highlighted that the company is offering a 40% stake on the stock exchange. This IPO is not only a significant milestone for the company but also a crucial step for the development of the UAE technology sector. According to the future chairman of Alpha Data, the company's goal is to maintain its position at the forefront of digital transformation and contribute to national technological strategies as well as GDP growth.
Founded in 1981 in Abu Dhabi, Alpha Data now employs over 1,500 people across the UAE, Saudi Arabia, and Qatar. The company collaborates with more than 2,200 businesses, including public institutions, state organizations, and private companies.
Dividend Policy and Financial Performance
Alpha Data's total issued capital is 30 million dirhams, divided into one billion shares with a nominal value of 0.03 dirhams each. The company plans to distribute dividends of 130 million dirhams for the financial year ending December 2025, payable in two installments, in October 2025 and April 2026. Subsequently, the company plans to pay dividends semi-annually, in April and October, distributing at least 80% of its net profit.
Financially, Alpha Data increased its revenue from 2 billion dirhams in 2023 to 2.32 billion dirhams in 2024. Net profit was 127 million dirhams in 2024, compared to 133 million dirhams the previous year.
Investors and Coordinators
The Emirates Investment Authority (EIA) will be entitled to purchase up to 5% of the offering. The IPO is supported by several major financial institutions: EFG-Hermes and Emirates NBD Capital as global coordinators and bookrunners, while Abu Dhabi Commercial Bank also acts as a bookrunner. The subscription process is led by Emirates NBD Bank, with additional investment opportunities provided by the Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates Islamic Bank, and Wio Bank.
Alpha Data Business Segments and Regional Stock Market Trends
Alpha Data operates in three main business segments: solutions, services, and talent management. The company offers a wide range of digital transformation services to assist clients in their technological advancements.
In the fourth quarter of 2024, the Abu Dhabi Securities Exchange (ADX) experienced two major IPOs: Lulu Retail Holdings raised $1.7 billion, and ADNH Catering raised $235 million. Additionally, the Mair Group had a direct listing. In Dubai, the Dubai Financial Market (DFM) executed a single new listing at the end of 2024, Talabat Holding plc, operating in the consumer and technology sector, raised $2 billion.
Summary
The Alpha Data IPO is a significant event not only for the company but also for the development of the UAE's technology sector. The public listing offers the company further growth opportunities while contributing to national economic goals. For investors, it provides an opportunity to participate in the region's dynamic tech market. The subscription period beginning in February 2025 is definitely worth following, as Alpha Data's current and future potential is sure to capture investor interest.
