{"id":101046,"date":"2025-02-25T00:00:00","date_gmt":"2025-02-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-alpha-data-likely-to-price-ipo-at-top-of-range-is-sidaras-acquisition-of-wood-group-back-on-the-table\/"},"modified":"2025-02-25T00:00:00","modified_gmt":"2025-02-25T00:00:00","slug":"this-morning-alpha-data-likely-to-price-ipo-at-top-of-range-is-sidaras-acquisition-of-wood-group-back-on-the-table","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/02\/25\/this-morning-alpha-data-likely-to-price-ipo-at-top-of-range-is-sidaras-acquisition-of-wood-group-back-on-the-table\/","title":{"rendered":"THIS MORNING: Alpha Data likely to price IPO at top of range + Is Sidara\u2019s acquisition of Wood Group back on the table?"},"content":{"rendered":"

Good morning, friends. <\/strong>It\u2019s only Tuesday and the newsflow has once again picked up, with plenty of updates on the investment, debt, and renewables fronts. <\/p>\n

The big story of the day is the UAE\u2019s planned USD 40 bn in investments in Italy<\/strong>, cutting across sectors like energy, defense, and space. We also have news of a new dry ports facility linking Dubai and Abu Dhabi, Investcorp Capital planning an investment in Italian firm Epipoli, and much more. Let\u2019s dive in. <\/p>\n

?\ufe0f<\/strong>WEATHER- <\/strong>We might see more showers today<\/strong>, along with some blowing dust and a decrease in temperatures, according to our favorite weather app and the National Center of Meteorology\u2019s forecast (pdf)<\/a>. Dubai<\/strong> will see the mercury hit 25\u00b0C today, with an overnight low of 19\u00b0C, while temperatures will hit 21\u00b0C in Abu Dhabi<\/strong>, with an overnight low of 18\u00b0C.<\/p>\n

UPDATES- <\/p>\n

#1- Over half of the demand for Adnoc Gas's massive USD 2.8 bn follow-on offering came <\/strong>from international investors<\/strong>, with non-GCC accounts securing the majority (75%) of the order book, IFR<\/a> reports. Adnoc sold<\/a> an additional 4% stake in Adnoc Gas last week in a secondary share sale that was 4.4x oversubscribed, raising USD 2.8 bn, and increasing the company\u2019s free-float to 9%. The move sets the stage for Adnoc Gas\u2019s inclusion in the MSCI and FTSE emerging market indices, offering global investors greater exposure to the company.<\/p>\n

ADVISORS- <\/strong>The state-owned energy giant enlisted BofA Securities, Citi, EFG Hermes, First Abu Dhabi Bank, HSBC, and International Securities as coordinators and bookrunners to manage the sale. <\/p>\n

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<\/a> #2- <\/strong>ADGM <\/strong>completes expansion to Al Reem Island: <\/strong>ADGM has finalized its jurisdictional expansion to Al Reem Island, increasing the combined area of Al Maryah and Al Reem Islands to 14.4 mn sqm and adding 500k sqm of new office space to meet growing business demand, it said in a statement<\/a>. Since the expansion was first announced in April 2023, 600 new businesses have set up on Al Reem Island, while 500 existing companies have transitioned to ADGM\u2019s jurisdiction, bringing the total number of entities under its umbrella to 1.1k.<\/p>\n

IN CONTEXT- <\/strong>The ADGM added Al Reem Island to its jurisdiction in November 2023 as part of its expansion to accommodate the demand for office space<\/a> in the financial hub. ADGM waived registration<\/a> fees for Reem Island businesses until December as part of an incentive package aiming to facilitate their transition to the hub.<\/p>\n

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#3- <\/strong>Sharjah<\/strong> launched Aqari, a new digital platform that streamlines real estate ren<\/strong>tal<\/strong> services<\/strong> by reducing the required steps to three from seven, and eliminating the need for in-person visits, Khaleej Times<\/a> reports. Previously, completing rental services involved five physical visits to various departments. In its pilot phase, over 90 companies have registered with Aqari, listing more than 4.7k properties.<\/p>\n

REMEMBER- <\/strong>Plans for the platform\u2019s launch were first revealed in October 2024<\/a> as a collaboration between Sharjah Digital Department and Adres Real Estate Services.<\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1-<\/strong> Alpha Data is likely to price its IPO at the top of its <\/strong>indicati<\/a><\/strong>ve range<\/a><\/strong> AED <\/strong>1.50 per share<\/strong>, with strong demand expected to push the tech firm\u2019s valuation up to AED 1.5 bn, Bloomberg<\/a> reports, citing terms it has seen. The offering \u2014 which marks Abu Dhabi\u2019s first IPO of the year \u2014 is expected to raise up to USD 600 mn, reflecting sustained investor appetite for tech players operating in AI. Alpha Data\u2019s only two shareholders are selling down their position to a combined 60% stake in the company and pocketing net proceeds from the secondary sale<\/a> of a 40% interest. <\/p>\n

What\u2019s next? <\/strong>The subscription period for retail and institutional investors is due to wrap up later today, with the company scheduled to announce its final IPO price tomorrow. Trading is expected to begin around Tuesday, 11 March. Alpha Data also appointed BHM Capital as the price stabilization manager, according to a DFM disclosure (pdf)<\/a>. <\/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

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<\/a> #2- Sidara\u2019s Wood Group acquisition back on the table? <\/strong>Abu Dhabi-based engineering conglomerate Sidara is once again in advanced talks to acquire UK energy services firm Wood Group, the Financial Times<\/a> reports. Sidara, which withdrew from a prior takeover bid in August last year<\/a>, reengaged with Wood Group after its stock price plummeted in recent weeks, according to sources close to the negotiations. While discussions continued as of Monday morning, the sources cautioned that an agreement might not materialize \u2014 though under UK takeover rules, Sidara has until 24 March to make a formal offer or walk away. <\/p>\n

Market reax:<\/strong> Wood Group\u2019s shares rose 31.1% on the news.<\/p>\n

Wood\u2019s shares have plunged 60% <\/strong>earlier this month<\/strong>, driven by governance failures, a USD 1.4 bn debt cliff due by October 2025, and the resignation of CFO Arvind Balan, who admitted to falsifying qualifications. Once valued at EUR 5 bn after its 2017 takeover of Amec Foster-Wheeler, Wood\u2019s market cap now stands at EUR 258 mn \u2014 a fraction of the valuation EUR 1.6 bn<\/a> it would have had if Sidara\u2019s earlier offer came had come through last year. <\/p>\n

The engineering conglomerate is now prioritizing swift acquisition to retain Wood\u2019s senior talent amid employee unrest over bonus cuts. <\/strong>Sidara aims to acquire Wood intact, though the firm explored selling its EUR 1 bn consulting arm to reduce debt. Private equity firm Apollo, a 2023 suitor<\/a>, is unlikely to counterbid, leaving Sidara as the frontrunner. <\/p>\n

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<\/a> #3- Tabreed taps banks for green sukuk issuance:<\/strong> District cooling firm Tabreed has appointed banks to advise on a five-year Reg S USD-denominated benchmark green senior unsecured sukuk issuance, Zawya<\/a> reports. The issuance \u2014 which would come under its USD 1.5 bn trust certificate program \u2014 is still subject to market conditions. Tabreed holds a Baa3 credit rating with a stable outlook from Moody\u2019s and a BBB rating from Fitch with a stable outlook.<\/p>\n

ADVISORS- <\/strong>Citi and Standard Chartered Bank will act as joint global coordinators, and also serve as joint lead managers and joint bookrunners along with Emirates NBD Capital, First Abu Dhabi Bank, and HSBC. Abu Dhabi Commercial Bank has been appointed as co-manager.<\/p>\n

REMEMBER-<\/strong> Tabreed\u2019s board will also seek shareholder approval on 25 March<\/a> to issue up to USD 2 bn in an additional non-convertible issuance as it looks to refinance debt, including USD 1.2 in loans set to mature during this year.<\/p>\n

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<\/a> #4- <\/strong>Sharjah<\/strong>Islam<\/strong>ic Bank\u2019s (SIB) shareholders approved its USD 500 mn <\/strong>Reg S five<\/strong>-year<\/strong> sukuk offering<\/strong> as part of its USD 3 bn trust certificate issuance programme, according to a DFM disclosure (pdf)<\/a>. The disclosure said the issuance intends to \u201c[strengthen] the Bank\u2019s capital adequacy ration.\u201d The board also recommended that AED 458.7 mn be distributed in dividends.<\/p>\n

ICYMI- <\/strong>The issuance had initial price thoughts of T+1.25%<\/a> and is set to be listed on Euronext Dublin and Nasdaq Dubai following a wakala structure. First Abu Dhabi Bank and Damac are also set to proceed with sukuk issuances soon.<\/p>\n

ADVISORS-<\/strong> Our friends at Mashreq, along with Emirates NBD Capital, HSBC, Standard Chartered, Abu Dhabi Islamic Bank, Dubai Islamic Bank, ICD, and Warba Bank are joint lead managers and bookrunners.<\/p>\n

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#5- <\/strong>Tech <\/strong>firm Bird targets Dubai for global expansion: <\/strong>Dubai has been selected as a primary operational hub for Dutch cloud communications firm Bird<\/a> as it shifts its focus away from Europe, citing restrictive regulations and a challenging talent landscape, Bird CEO Robert Vis said in a LinkedIn post<\/a>. Vis said Europe\u2019s restrictive regulatory environment, including the EU\u2019s AI Act, will likely stifle innovation in an era dominated by rapid AI advancements in an interview with Reuters<\/a>. The company \u2014 which competes with US-based Twilio in corporate communication solutions \u2014 will split its operations between Dubai, New York, and Singapore, though it will retain a small office in Lithuania and its tax base in the Netherlands.<\/p>\n

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#6- Credit ratings agency Moody\u2019s is the latest to forecast a dip or stabilization in <\/strong>Dubai\u2019s <\/strong>property market over the next <\/strong>12 to 18 months<\/strong>, as developers face rising construction costs and potential delivery delays as construction work is outsourced, according to a ratings report for real estate developer Damac\u2019s special purpose vehicle Alpha Star picked up by Zawya<\/a>. There is a large pipeline of pre-sales set for completion over the next two to three years, which could also impact pricing trends, the ratings agency said, while giving the sukuk SPV a backed senior unsecured rating of Ba2. Damac earlier this week priced<\/a> its USD 750 mn senior unsecured sukuk at T+268.9 bps, offering a 4.25% coupon.<\/p>\n

ICYMI- <\/strong>A Deloitte report earlier this week<\/a> projected that residential price and rent growth may slow by year-end as new supply enters the market. Knight Frank previously forecasted that Dubai\u2019s residential prices will rise by 8% in 2025<\/a>, down from a 20% surge in 2024, with others expecting an increase in supply over the next two to three years to contribute to market stabilization. <\/p>\n

Developers are preparing to deliver <\/strong>182k units<\/a><\/strong> in Dubai between 2025 and 2026<\/strong>, but construction capacity constraints could lead to delays, tightening supply and supporting short-term price increases, according to a previous S&P Global report. ValuStrat data indicated that only 58%<\/a> of the projected supply was delivered last year, marking the lowest completion rate in six years with just 27k homes completed.<\/p>\n

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#7- Abu Dhabi\u2019s government has issued tenders for stormwater drainage a<\/strong>nd flood mitigation projects<\/strong>, according to announcements (pdf)<\/a> on the Abu Dhabi Government Procurement Gate<\/a>. The government is seeking bids for the project amid an increase in the frequency of extreme weather events, in a bid to control flooding and increase climate resilience. <\/p>\n

The tenders:<\/strong><\/p>\n