Image: ALEC Holdings
ALEC Holdings, the Dubai-based engineering and construction group, priced its initial public offering (IPO) at the top of the indicated range, raising Dhs1.4bn ($381m) in the UAE’ largest construction sector IPO to date.
The company sold one billion shares at Dhs1.40 each, implying a market capitalisation of Dhs7bn ($1.91bn) at listing, ALEC said in a statement.
The sale represents 20 per cent of the company’s share capital, all offered by the Investment Corporation of Dubai (ICD), which will retain an 80 per cent stake.
The offering drew Dhs30bn ($8.1bn) in orders, more than 21 times oversubscribed, with strong demand from UAE, Gulf, and international investors. It also recorded one of the highest levels of non-UAE investor participation among recent Dubai listings, the company said.
Shares are expected to begin trading on the Dubai Financial Market (DFM) on or around October 15 under the symbol “ALEC”.
ALEC’s dividend plans for next two years
According to its dividend policy, ALEC plans to pay Dhs200m in April 2026 and Dhs500m for the 2026 financial year, implying a dividend yield of 7.1 per cent at the IPO price.
Payments will follow a semi-annual schedule thereafter, subject to board approval and available reserves.
“We are proud that ALEC’s IPO drew strong demand and significant interest from a diverse and high-quality investor base,” said Barry Lewis, CEO of ALEC. “This is a clear vote of confidence in ALEC’s distinct value proposition and disciplined operating model.”
ALEC, part of ICD, is the UAE’s first construction company to list in over 15 years. The group has delivered large-scale projects across the UAE and Saudi Arabia and operates in engineering, construction, and project management.
Emirates NBD Capital and J.P. Morgan acted as joint global coordinators and joint bookrunners. Abu Dhabi Commercial Bank and EFG Hermes were joint bookrunners, while Moelis & Company UK LLP DIFC Branch was independent financial adviser.
