{"id":100713,"date":"2025-02-14T00:00:00","date_gmt":"2025-02-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/alpha-data-plans-to-list-40-stake-on-adx-as-early-as-next-month\/"},"modified":"2025-02-14T00:00:00","modified_gmt":"2025-02-14T00:00:00","slug":"alpha-data-plans-to-list-40-stake-on-adx-as-early-as-next-month","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/02\/14\/alpha-data-plans-to-list-40-stake-on-adx-as-early-as-next-month\/","title":{"rendered":"Alpha Data plans to list 40% stake on ADX as early as next month"},"content":{"rendered":"

IT services firm <\/strong>Alpha Data<\/a><\/strong> is looking to float a 40% stake in a secondary <\/strong>share sale on the ADX<\/strong>, whereby selling shareholders will take home all of the IPO proceeds, according to i<\/a>ts prospectus (pdf)<\/a>. The company \u2014 which operates in the UAE, Saudi Arabia, and Qatar \u2014 initially announced plans to go public<\/a> in July 2024, with an eye on raising USD 200 mn through the IPO.<\/p>\n

Who\u2019s selling? <\/strong>Bin Hamoodah Company \u2014 one of Alpha Data\u2019s only two shareholders \u2014 is selling a 26.67% stake in the company, while Ibbini Investment is selling a 13.3% stake, bringing their combined ownership down to a 60% stake post-IPO. <\/p>\n

The breakdown: <\/strong>Some 95% of the offering \u2014 comprising 380 mn shares \u2014 will be limited to institutional investors, including a 5% share allocated to the Emirates Investment Authority. The remaining 5% is reserved for retail investors (including non-residents and minors). <\/p>\n

What\u2019s next? <\/strong>The subscription period for both the retail and institutional tranches is due to kick off on Thursday, 20 February with the closing date set for Tuesday, 25 February. The final price of the offering will be announced on Wednesday, 26 February, with the final allocation slated for Tuesday, 5 March. Trading is expected to begin around Tuesday, 11 March.<\/p>\n

REMEMBER- <\/strong>Selling shareholders retain the right to amend the size of the offering at any point until subscription ends. This includes last-minute downsizing or upsizing of either tranches. Several listed firms, including Talabat<\/a>, Lulu Retail<\/a>, and Alef Education<\/a>, decided to boost the size of their offerings last year due to high demand.  <\/p>\n

A snapshot of Alpha Data\u2019s performance: <\/strong>In 2023, Alpha Data held a 6% market share within the UAE\u2019s total addressable market. The company logged AED 127 mn in net income during FY 2024 (down 5.3% y-o-y) while its revenues came in at AED 2.32 bn (up 15% y-o-y), according to the prospectus.<\/span><\/p>\n

A sweetener for investors: <\/strong>Alpha Data plans to distribute AED 130 mn (USD 35 mn) in dividends for FY 2025, payable in two equal installments. The company has maintained a healthy dividend payout averaging 75% from 2021 to 2024, excluding a special pre-IPO dividend of AED 161 mn paid-out last year. <\/p>\n

About Alpha Data: <\/strong>Founded in 1981, Alpha Data is an Abu-Dhabi based digital and IT services provider. The company offers a comprehensive suite of tech solutions, including IT infrastructure, AI, cybersecurity, big data, and cloud services. Its operations across the UAE, Qatar and Saudi Arabia are supported by a network of subsidiaries including Alpha Data Recruitment, Tuqnia, and Alpha Data Technology, among others. <\/p>\n

ADVISORS- <\/strong>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. <\/p>\n

The UAE has a strong pipeline of IPOs for 2025:<\/strong><\/p>\n