UAE-based information and communications technology (ICT) solutions provider Alpha Data is setting its sights on a potential initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) by the end of 2024, aiming to raise nearly $200 million, according to a Bloomberg report.
The report, citing unnamed sources, indicates that Alpha Data is collaborating with investment banking firms EFG Hermes and Emirates NBD Capital to facilitate the share sale. While the final details of the IPO, including the exact size of the offering, are still being ironed out, the company is hopeful of completing the process by year's end.
This potential IPO by Alpha Data comes on the heels of a period of significant growth for the UAE's stock markets. Year-to-date, three new companies have successfully listed on the ADX, collectively injecting over $5. 8 billion in fresh market capitalization. Alef Education Holding, the first IPO on the ADX this year, led the pack with a market capitalization exceeding $9. 45 billion.
Alpha Data offers a comprehensive suite of ICT solutions, encompassing artificial intelligence, mobility solutions, cybersecurity tools, Internet of Things (IoT) applications, big data analytics, and cloud computing services. The company's decision to pursue an IPO on the ADX reflects the growing confidence in the Emirate's capital markets as a platform for business expansion and fundraising.
The ADX has been implementing a series of strategic initiatives aimed at attracting new listings and boosting investor participation. These initiatives include streamlining regulations, shortening listing timelines, and enhancing market transparency. The exchange's efforts appear to be yielding positive results, with a growing number of companies, both domestic and international, considering the ADX for their IPOs.
If Alpha Data's IPO materializes, it would be yet another significant development for the ADX and further solidify Abu Dhabi's position as a leading financial hub in the region. The influx of new listings, coupled with the exchange's ongoing reforms, is expected to generate increased liquidity and investor interest in the UAE's capital markets.