Abu Dhabi-based Alpha Data, one of the leading digital transformation providers and system integrators in the UAE, announced today its intention to proceed with an initial public offering (IPO) and to list its ordinary shares on the Abu Dhabi Securities Exchange (ADX).
The group plans to offer 400 million shares at a nominal value of AED0.03 per share, representing 40 percent of the company’s issued share capital.
“Our IPO is an important and exciting moment for Alpha Data – enabling us to build on our success as a leading digital transformation provider. As a business, we will continue to enhance and expand our offering to ensure we remain at the forefront of our customer’s digital transformation journey, supporting the strategies of the countries we operate in to increase the input of technology to national GDP,” stated Mohamed Omran Al Shamsi, Alpha Data prospective chairman.
Subscription period to open on February 20
The group’s statement confirmed that all shares being offered are from existing shareholders, namely Bin Hamooda Group and Ibbini Investment Company, which retain the right to adjust the size of the offering and any tranche at any time before the end of the subscription period, at their discretion and in accordance with applicable laws, after obtaining approval from the UAE Securities and Commodities Authority.
The subscription period will open on February 20, 2025, and end on February 25, 2025, for both UAE retail investors and professional investors. The offer price will be determined through book-building and the admission of shares for trading on the ADX is expected to take place in March 2025.
“Given the increasing importance of technology in everyday life, not just in the UAE, but globally, Alpha Data is in a strong position to leverage its experience to take further market share, providing investors the chance to invest in one of the few businesses in the UAE that is fully integrated into the digital economy,” stated Fayez Ibbini, founder and CEO, Alpha Data.
IPO available to retail and professional investors
The Alpha Data IPO will be available to UAE retail investors and other investors as part of the first tranche. It will also be available to professional investors outside the United States, including the UAE, as part of the second tranche
Alpha Data appointed EFG-Hermes and Emirates NBD Capital PSC as joint global coordinators and joint book-runners for the IPO. Meanwhile, Abu Dhabi Commercial Bank PJSC has been appointed as joint book-runner.
The group added that Emirates NBD Bank PJSC has been appointed as the lead receiving bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank, Emirates Islamic Bank and Wio Bank have also been appointed as receiving banks.
Read: ADX among top five exchanges globally in IPO proceeds, raising $3.35 billion in 2024
Group to pay dividend of AED130 million
The total issued share capital of Alpha Data is AED30 million divided into 1 billion shares, with the nominal value of each share being AED0.03.
For the financial year ending December 31, 2025, Alpha Data intends to distribute a dividend of AED130 million, payable in two equal installments in October 2025 and April 2026.
Thereafter, the group expects to distribute dividends on a semi-annual basis, with a minimum payout of 80 percent of the net profit generated for the relevant financial period, subject to the approval of the Board and the availability of distributable reserves.
