ALEC Holdings Launches AED 1.4B IPO on Dubai Financial Market

ALEC Holdings PJSC, a leading diversified engineering and construction group in Dubai, has announced the launch of its initial public offering (IPO) on the Dubai Financial Market (DFM), with a price range of AED 1.35–1.40 per share. The move is set to value the company between AED 6.75 billion (US$ 1.84 billion) and AED 7 billion (US$ 1.91 billion).

A total of 1 billion shares, representing 20% of ALEC’s share capital, will be offered by the Investment Corporation of Dubai (ICD), the principal government shareholder, generating proceeds of AED 1.35–1.40 billion (US$ 368–381 million). The company will not receive funds from the IPO, and ICD will retain an 80% stake post-offering.

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Dividend Policy and Yield

ALEC plans to distribute AED 200 million in April 2026 and AED 500 million for the financial year ending 31 December 2026, with dividend payments scheduled for October 2026 and April 2027. Based on the offering price, this translates to an attractive dividend yield of 7.1–7.4%. Going forward, ALEC expects semi-annual dividends with a minimum payout ratio of 50% of net profits, subject to board approval.

IPO Tranches and Subscription

The IPO comprises three tranches:

• Individual Subscribers: 5% of shares for retail investors and eligible National Investor Number holders.

• Professional Investors: 94% for qualified institutional investors outside the US under Regulation S.

• Eligible ALEC and ICD Employees: 1% reserved for employees.

Additionally, 10% of shares from the professional tranche are reserved for the Emirates Investment Authority (EIA) and the Pensions Social Security Fund, 5% each. Any unclaimed shares will return to professional investors.

The subscription period runs until 30 September 2025, with the final offer price to be announced on 1 October 2025. The IPO is expected to complete, and shares listed, on 15 October 2025, subject to market conditions and regulatory approvals.

Lock-up and Stabilisation

Following the IPO, ICD’s remaining shares will be subject to a 180-day lock-up, as will ALEC itself, under the underwriting agreement. xCube LLC has been appointed to stabilise up to 100 million shares to support market pricing.

Shariah Compliance and Advisory

The Internal Shariah Supervision Committee of Emirates NBD confirmed the IPO’s compliance with Shariah principles. Emirates NBD Capital and J.P. Morgan are joint global coordinators and bookrunners, while Abu Dhabi Commercial Bank and EFG-Hermes act as joint bookrunners. Moelis & Company UK LLP serves as independent financial adviser.

An ALEC spokesperson said, “This IPO marks a milestone in our growth journey. The offering allows broader participation in ALEC’s future while maintaining strong governance and commitment to sustainable dividends for investors.”

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