Alpha Data mulls IPO: IT services firm Alpha Data is reportedly planning to raise around USD 200 mn through an upcoming IPO on the ADX as soon as this year, Bloomberg reports, citing sources familiar with the matter. The Abu Dhabi-based company tapped EFG Hermes and Emirates NBD Capital to advise on the potential share sale. Specifics such as the size of the sale are still preliminary and subject to change, the unnamed sources indicated.

The ADX could see a number of blockbuster IPOs this year: The exchange could see the Gulf’s first airline IPO, courtesy of Etihad Airways, which has already tapped advisors for the sale, alongside supermarket chain LuLu group. Edtech firm Alef Education is so far the ADX’s only IPO of the year, raising AED 1.89 bn — making it the biggest this year — but seeing a lackluster debut with shares falling 18% on its first day of trading.

Analysts are optimistic about the IPO momentum, with EFG Hermes’ head of equity capital markets, Ali Khalpey, telling Bloomberg he expects more to come this year, particularly from the private sector. Private-sector IPOs will likely range between USD 300 mn to USD 500 mn in the GCC this year, though government listings will be larger, he added. Dominant sectors include e-commerce and IT, Khalpey said.

Khalpey says it’s only a matter of time for Alef Education’s stock to rise back up. “We’ve definitely pushed the valuation boundaries when it came to both these IPOs,” he said. “It takes time for people to appreciate the business models that these companies have.”

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