Alpha Data, a leading technology service provider in the UAE, has announced its plan to go public. The company aims to raise up to $163 million through an Initial Public Offering (IPO). This move aligns with the UAE’s broader strategy to strengthen its technology sector and attract more investors.
Alpha Data IPO Details
Alpha Data will offer 400 million shares, representing 40% of the company’s total shares, at a price range of AED 1.45 to AED 1.50. This range values the company between $395 million and $408 million.
Investors can subscribe to the IPO from February 20 to February 25, 2025. UAE retail investors and institutional investors can participate. The book-building process will determine the final share price, which the company will announce on February 26. The Abu Dhabi Securities Exchange (ADX) will begin trading the shares on March 11.
Alpha Data Shareholding and Dividend Plans
The shares in the IPO will come from existing stakeholders, Bin Hamoodah Company LLC and Ibbini Investment Company LLC. Alpha Data has also announced plans to distribute AED 130 million in dividends for 2025. This payout will provide an estimated dividend yield of 8.7% to 9.0%.
In 2024, the company recorded a net profit of AED 127 million and total revenue of AED 2.32 billion. This financial stability makes the IPO an attractive opportunity for investors.
Alpha Data’s Growth and Business Model
Founded in 1981 by entrepreneur Fayez Ibbini, Alpha Data has become a key player in the UAE’s digital transformation sector. The company specializes in system integration, IT solutions, and cloud computing services.
Over the years, Alpha Data has built a strong reputation for helping businesses transition to modern digital infrastructure. With increasing demand for technology-driven solutions, the company expects steady growth after its IPO.
Investor Participation and Banking Support
The IPO is divided into two categories:
- A UAE Retail Offering of 5% for individual investors.
- A Qualified Investor Offering of 95% for larger institutional investors.
EFG Hermes and Emirates NBD Capital PSC will act as the lead global coordinators and bookrunners for the offering. Abu Dhabi Commercial Bank is also supporting the IPO process.
Shariah Compliance and Future Prospects
The Internal Sharia Supervision Committee of Emirates NBD has confirmed that the IPO follows Shariah principles. This makes it accessible to a wider range of investors who prefer Shariah-compliant investments.
With the UAE’s economy growing rapidly, Alpha Data’s IPO presents a promising opportunity. Investors will gain access to a well-established, profitable company that continues to drive digital transformation across the region. The funds raised will help Alpha Data expand its services and strengthen its market position in the years ahead.
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