ABU DHABI: Alpha Data PJSC, alongside its subsidiaries, has announced the initiation of its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).
The strategic move underscores the company’s ambition to solidify its position as a leading digital transformation provider and system integrator within the region. The IPO represents not only a pivotal moment for Alpha Data but also a significant milestone for the UAE’s financial landscape, reflecting the growing investor interest in technology-driven enterprises.
The price range for the offering has been set between AED1.45 and AED1.50 per share, which translates to a market capitalization of approximately AED1.45 billion ($395 million) to AED1.50 billion ($408 million) at the time of listing.
This valuation is indicative of Alpha Data’s robust market presence and investors’ confidence in its future growth prospects. The offering will consist of 400,000,000 shares, representing 40 per cent of the Group’s total issued share capital, with a nominal value of AED0.03 per share.
Diverse ownership structure
Such a substantial allocation of shares to the public reflects the company’s commitment to fostering a diverse ownership structure and engaging with a broader base of investors.
Furthermore, Alpha Data’s anticipated dividend distribution of AED130 million for the year 2025, which corresponds to a dividend yield ranging from 8.7 per cent to nine per cent, further enhances the attractiveness of the offering.
The financial strategy not only promises returns for investors but also exemplifies Alpha Data’s operational strength and its ability to generate sustainable profits amidst a competitive marketplace.
The IPO will be structured into two distinct tranches: a UAE Retail Offering, which will account for five per cent of the total offer size, and a Qualified Investor Offering, comprising the remaining 95 per cent. This dual approach ensures that retail and institutional investors can participate in the offering, broadening the company’s investor base.
The subscription period is set to commence on February 20, 2025, and will conclude on February 25, 2025, with the final offer price to be determined through a book-building process and announced shortly thereafter.
Strong interest
The strategic timing of this IPO is also noteworthy, as it coincides with a period of rapid growth in the Information and Communications Technology (ICT) sector, particularly in areas such as artificial intelligence and digital transformation.
Fayez Ibbini, the Founder and CEO of Alpha Data, expressed optimism regarding the strong interest from potential investors, highlighting the company’s robust fundamentals and its readiness to capitalise on the macro trends driving the ICT sector.
“With established operations in Saudi Arabia and Qatar, Alpha Data is poised for further expansion, reinforcing its status as a key player in the region’s digital transformation landscape.”
Moreover, the confirmation from the Internal Sharia Supervision Committee of Emirates NBD regarding the Shariah compliance of the offering adds an additional layer of credibility and appeal, particularly for investors seeking Shariah-compliant investment opportunities.
This endorsement reflects Alpha Data’s commitment to adhering to ethical standards in its business practices, aligning with the values of a significant segment of the UAE’s investor community.
