Alpha Data plans Abu Dhabi IPO amid digital transformation boom

Technology services provider aims to float 400 million shares on Abu Dhabi bourse

Alpha Data expects to begin trading on the Abu Dhabi Securities Exchange in March. Victor Besa / The National

Alpha Data, an Abu Dhabi-based digital transformation services provider, plans to list 40 per cent of its issued share capital on the capital's bourse, amid economic momentum and a listing boom in the UAE.

Bin Hamoodah Company and Ibbini Investment, the selling shareholders, aim to offer 400 million shares, with a nominal value of Dh0.03 ($0.008) per share, through an initial public offering on the Abu Dhabi Securities Exchange, the companies said on Thursday.

Alpha Data, which was established in 1981, has a total issued share capital of Dh30 million.

The subscription period will run from February 20 to 25, and the final offer price on the deal will be determined through book-building. The selling shareholders have reserved the right to amend the size of the offering and expect Alpha Data to begin trading on the ADX in March.

Retail and other UAE investors will be able to subscribe to the shares on offer in the first tranche, while the second tranche is reserved for professional investors, Alpha Data said without giving the percentages of shares reserved for each tranche. The Emirates Investment Authority will be able to subscribe to up to 5 per cent of the offering, it added.

Alpha Data employs more than 1,500 staff, providing ICT solutions for thousands of organisations, according to its website. Its portfolio includes services for artificial intelligence, mobility, security, the Internet of Things, big data and the cloud.

Its public float aims to support digital strategies in the countries it operates and boost the contribution of technology to national economies, Mohamed Al Shamsi, Alpha Data's prospective chairman, said.

The IPO enables the company to "build on our success as a leading digital transformation provider", he said "As a business, we will continue to enhance and expand our offering."

Alpha Data is the latest company seeking to sell shares to the public amid a listing boom driven by robust investor demand for new issues.

The continued economic momentum in the UAE, the Arab world's second-largest economy, has also boosted listings across sectors on both Abu Dhabi bourse and the Dubai Financial Market.

Alpha Data's planned listing follows a string of IPOs over the past year. Talabat Holding, the Middle Eastern unit of Germany's food delivery platform Delivery Hero, raised Dh7.5 billion in November, in what was the GCC's biggest IPO in 2024. Also that month, UAE retail major Lulu Group raised Dh6.32 billion.

Other UAE IPOs in 2024 included NMDC Energy, a unit of Abu Dhabi contractor National Marine Dredging Company, raising $877 million, and Alef Education, which raised $515 million.

Analysts say the pipeline of IPO deals in the UAE remains strong amid robust expansion of the non-oil sector in the Emirate's economy. The UAE's government's push to unlock value in state entities and part-sell stakes is also supporting deal flows.

Dubai Investments, a diversified company in which the sovereign wealth fund Investment Corporation of Dubai holds a stake, last month said it plans to take four of its subsidiaries public.

Alpha Data is seeking to tap into the technology boom in the UAE, where the government has continued to champion digital transformation and the adoption of emerging innovations as it transitions to the economy of the future.

"Given the increasing importance of technology in every day life, not just in the UAE but globally, Alpha Data is in a strong position to leverage its experience to take further market share," said Fayez Ibbini, founder and chief executive of Alpha Data.

The listing will be an opportunity to provide investors "the chance to invest in one of the few businesses in the UAE that is fully integrated into the digital economy", he added.

EFG-Hermes and Emirates NBD Capital are joint global co-ordinators and joint bookrunners for the IPO, while Abu Dhabi Commercial Bank is a joint bookrunner. Emirates NBD is the lead receiving bank, while ADCB, Abu Dhabi Islamic Bank, Emirates Islamic Bank and Wio Bank are the receiving banks.