UAE tech firm Alpha Data sets IPO price range - and higher dividend promise

Dubai: The UAE's first IPO of 2025, Alpha Data, has set its IPO price range at between Dh1.45 and Dh1.50 a share, which would mean a market cap of Dh1.45 billion and Dh1.50 billion.

The Abu Dhabi headquartered IT company specialises in enterprise level integration projects and has racked up a sizable track record over the years.

Alpha Data is offering 40% via the stock market float, which will then lead to an ADX listing.

The group expects to pay dividends of Dh130 million for 2025, which implies a yield of 9% to 8.7% based on the price range.

Subscriptions opened today (February 20) and extends up to February 25, for retail and professional investors. The final offer price will likely be announced February 26.

"Our IPO marks a rare opportunity to invest in a homegrown UAE family business with strong fundamentals underpinned by macro-trends in the ICT sector, including the rapid growth of Agentic AI," said Fayez Ibbini, founder-CEO of Alpha Data. (Agnetic AI relates to AI-enabled systems that can make complex decisions and act on them - autonomously.)

"With our recently established presence in Saudi Arabia and Qatar, Alpha Data is well positioned to drive further growth across key business verticals, supported by our main operations in the UAE. This was demonstrated by the robust performance across the business in 2024 - momentum we have seen continue into 2025."

Medium-term growth prospects will be dictated by the speed at which AI-linked projects are implemented in UAE, Saudi Arabia and other Gulf markets.

How the offer split will be

Under the UAE retail offer, 20 million shares have been allocated, making up 5% of the total Offer Shares. The minimum application size for these subscribers is Dh5,000.

Each successful subscriber gets a minimum allocation of 2,000 shares, subject to conditions.

There are 380 million shares for professional investors, representing 95% of the Offer. The minimum application size is Dh5 million.

Share stabilization

Alpha Data has appointed a stabilization manager who may 'effect stabilization transaction's on up to 40 million shares. This will be to support the market price of these stabilization shares at a 'higher level than that which might otherwise prevail in the open market'.