First IPO of the year does well on debut: Alpha Data’s share price rose 6.67% on its ADX debut yesterday, closing at AED 1.60 apiece, up from the final offer price of AED 1.50, according to market data. The IT services firm floated a 40% stake in what was both the UAE and Abu Dhabi’s first IPO of the year, cashing-in on heightened investor appetite for tech players operating in AI.

REFRESHER- The IPO, which raised AED 600 mn, was a secondary offering, with the shareholders selling down their positions to a combined 60% stake in the company.

The positive first-day performance comes following several lackluster debuts last year, despite IPOs being consistently oversubscribed, with pricing at the high end of the range due to high demand. On the ADX, ADNH Catering and Alef Education — which both saw a muted start on the ADX — are both down from their debut price, with ADNH Catering’s shares down 6.2% as of market close, and Alef Education’s shares down 21.4%.

AI listings on the rise: Alpha Data’s IPO may have spurred Adnoc and Presight AI Holding to revive plans for a listing of their artificial intelligence JV — AIQ. The two firms are said to be in early discussions with banks about a potential IPO on the ADX as soon as this year, though details on the size and timeline remain under wraps.

ADVISORS- EFG Hermes, Emirates NBD and Abu Dhabi Commercial Bank are acting as joint lead managers for the transaction, with Ashurst and Latham & Watkins providing legal counsel. Deloitte & Touche are serving as auditors.

Also in the 2025 IPO pipeline: The revival of Abu Dhabi AI firm AIQ’s IPO plans adds to a hefty pipeline, along with long-awaited listings from Etihad Airways, IHC’s 2PointZero, property developers Alec Construction and Arabian Construction, with Dubizzle Group, and hospitality group Five Holdings having already tapped banks for the move. Meanwhile, Abu Dhabi Investment Group (ADIG) is eyeing listings for its financial unit and energy subsidiary and Amanat Holdings is looking to float its education and healthcare units. Shisha producer Advanced Inhalation Rituals is also rumored to potentially IPO.

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