UAE-based technology firm Alpha Data has announced its plans to launch an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), marking a significant milestone as the first company to go public in the UAE in 2025. This move comes as part of a broader trend of increasing IPO activity in the region, particularly among technology-focused firms.
IPO Details
Alpha Data intends to offer 400 million shares, representing 40% of its issued share capital, at a nominal value of AED 0.03 per share. The shares will be available for subscription from February 20 to February 25, 2025, for both retail and professional investors. The final offer price will be determined through a book-building process, with trading expected to commence in March 2025.
Key Participants
The IPO will feature existing shares held by Bin Hamoodah Group and Ibbini Investment Company, which retain the right to adjust the offering size before the subscription period’s conclusion. The firm has appointed EFG-Hermes and Emirates NBD Capital PSC as joint global coordinators and book runners for the IPO, while Abu Dhabi Commercial Bank PJSC serves as a joint book runner. Additionally, Emirates NBD Bank PJSC will act as the lead receiving bank for the offering.
Strategic Importance
Fayez Ibbini, the founder and CEO of Alpha Data, emphasized that this IPO represents a pivotal moment for the company. He stated, “Our IPO is an important and exciting moment for Alpha Data—enabling us to build on our success as a leading digital transformation provider.” The company aims to continue enhancing its offerings to support customers’ digital transformation journeys and contribute significantly to the national GDP through technology integration.
Financial Performance
Established in 1981, Alpha Data has built a strong reputation in the UAE’s technology landscape, providing solutions in areas such as artificial intelligence (AI), security, big data, and cloud services. The company reported a net profit of AED 127 million in 2024 and generated revenues of AED 2.32 billion. With a compound annual revenue growth rate of approximately 23% from 2021 to 2024, Alpha Data is well-positioned to attract investor interest during this IPO.
Dividend Policy
Alpha Data plans to distribute a dividend of AED 130 million for the financial year ending December 31, 2025. This dividend will be paid in two equal installments—one in October 2025 and another in April 2026. The company aims to maintain a minimum payout ratio of 80% after this initial distribution.
Market Context
The UAE’s IPO market has seen renewed activity, particularly among technology firms looking to capitalize on growing investor interest. Following Alpha Data’s announcement, analysts expect more companies in the region to consider going public this year. The successful launch of this IPO could set a precedent for future listings and signal a robust recovery in the market following previous slowdowns.
As Alpha Data prepares for its IPO, both retail and institutional investors are keenly observing developments. The company’s established track record, combined with its strategic growth plans and commitment to shareholder returns through dividends, positions it as an attractive investment opportunity in the rapidly evolving digital economy.
Alpha Data’s IPO reflects its ambitions and highlights the increasing importance of technology companies within the UAE’s economic landscape. With trading expected to begin next month, all eyes will be on how this offering performs amid rising investor confidence in tech-driven enterprises.
