Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Alpha Data, a leading digital transformation and IT solutions provider in the UAE and an home-grown company, has announced its intention to proceed with an initial public offering (IPO) and list its shares on the Abu Dhabi Securities Exchange (ADX). The offering seeks to sell 40% stake in the company.
Alpha Data plans to offer 400 million shares, each with a nominal value of Dh 0.03, representing 40% of its total issued share capital. Alpha Data's total issued share capital is Dh30 million, divided into one billion shares with a nominal value of Dh0.03 per share.
The shares will be sold by Bin Hamoodah Company and Ibbini Investment Company, the existing shareholders, who retain the right to adjust the offering size before the subscription period ends.
The subscription period will run from February 20 to February 25, with shares expected to begin trading on the ADX in March 2025. The final offer price will be determined through a book-building process.
Founded in 1981, Alpha Data has evolved into a major player in digital transformation, IT infrastructure, cybersecurity, cloud computing, AI, and managed services. With over 1,500 employees, the company serves 2,200+ customers across the UAE, Saudi Arabia, and Qatar, including government agencies, banks, and leading corporations.
CEO Fayez Ibbini emphasised the company’s growth potential, stating: "Our IPO is an opportunity for investors to be part of Alpha Data’s expansion in high-growth digital sectors. With a strong market position and increasing demand for IT solutions, we are well-positioned to capitalise on regional digital transformation initiatives.”
Speaking to Aletihad, Ibbini said they have decided to sell 40% stake in the IPO as part of efforts to transition the company from a family-owned business to a company run by professionals.
Alpha Data has outlined a robust dividend policy, with plans to distribute Dh130 million for the financial year ending December 31, 2025, payable in two equal instalments in October 2025 and April 2026. Future dividends are expected to be at least 80% of net profit, subject to market conditions and company performance.
The company has demonstrated strong financial growth, with revenues rising to Dh 2.3 billion in 2024 from Dh 1.3 billion in 2021. Its net profit for 2024 stood at Dh 127 million.
Commenting on the latest IPO in the country, Vijay Valecha, Chief Investment Officer at Century Financial, said: “At a regional level, the offering could not have come at a better time for the company, as the GCC IPO wave remains strong, with more high-profile UAE and Saudi listings expected this year.”
Discussing valuations, Valecha noted that IT firms in the broader MENA region are currently trading at an average price-to-earnings (P/E) ratio of 14. “All eyes will be on the expected price band and valuations at the top end of the range. Any figure near the current sectoral P/E range could generate strong investor demand for the offering,” he added.
Alpha Data’s IPO marks a significant milestone, providing investors with an opportunity to participate in the UAE’s digital transformation sector, said Samer Mardini, Chief Investment Officer at Yorklyn Asset Management. “With a strong market position, reputable shareholders such as Bin Hamoodah and Ibbini Investment, and a well-structured book-building process ensuring fair valuation, this listing reflects confidence in the company’s growth potential.”
EFG-Hermes and Emirates NBD Capital have been appointed as joint global coordinators and joint bookrunners. Abu Dhabi Commercial Bank has been appointed as joint bookrunner. Emirates NBD has been appointed as the lead receiving bank. ADCB, ADIB, EIB and Wio Bank have also been appointed as receiving banks.
Emirates NBD stated that, in their view, the offering is compliant with Shariah principles. Investors should conduct their own due diligence to confirm Shariah compliance.
