ALEC Holdings Launches IPO on Dubai Financial Market

Dubai, UAE – September 23, 2025: ALEC Holdings PJSC, a leading engineering and construction group in the UAE, has officially announced the price range and opened the subscription period for its highly anticipated initial public offering (IPO) on the Dubai Financial Market (DFM). The announcement marks a significant milestone for the company as it prepares to list 20% of its share capital to investors.

Price Range and Valuation

The price range for the IPO has been set between USD 0.37 (AED 1.35) and USD 0.38 (AED 1.40) per share. This implies a market capitalization at listing of between USD 1.84 billion (AED 6.75 billion) and USD 1.91 billion (AED 7 billion).

A total of 1,000,000,000 (one billion) ordinary shares, representing 20% of ALEC’s share capital, will be offered to investors. This equates to an offering size between USD 368 million (AED 1.35 billion) and USD 381 million (AED 1.40 billion).

All shares being offered are existing shares owned by the Investment Corporation of Dubai (ICD), the Government of Dubai’s principal investment arm. ALEC itself will not receive any proceeds from the offering. Following the IPO, ICD will retain an 80% stake in the company unless it chooses to increase the offering size before the close of the subscription period.

ICD has also reserved the right to amend the size of the Offering at its sole discretion, subject to UAE regulatory approvals.

Dividend Policy

ALEC has announced an attractive dividend policy as part of the IPO. The company plans to distribute:

• USD 54.5 million (AED 200 million) in April 2026
• USD 136.2 million (AED 500 million) related to FY 2026, with the first payment in October 2026 and the second in April 2027

Based on these numbers, the IPO offers a dividend yield of approximately 7.1% to 7.4%, depending on the final offer price.

Beyond 2026, ALEC intends to pay dividends semi-annually in April and October, with a minimum payout ratio of 50% of net profits, subject to board approval and available distributable reserves.

Read more: Marjan Completes RAK Central Infrastructure, Names ALEC as Main Contractor

Subscription Structure

The IPO will be offered in three tranches, catering to a wide range of investors:

First Tranche – Individual Subscribers

• 5% of the total shares are allocated to retail investors and eligible entities with a DFM National Investor Number (NIN).

Second Tranche – Professional Investors

• 94% of the total shares are reserved for qualified institutional investors outside the U.S., in compliance with Regulation S and UAE laws.
• 10% of this tranche (5% each) is specifically reserved for: Emirates Investment Authority (EIA) Pensions Social Security Fund of Local Military Personnel

If these institutions do not exercise their preferential rights, the shares will be reallocated to other professional investors.

Third Tranche – Eligible ALEC and ICD Employees

• 1% of the total shares are allocated to eligible employees of ALEC and ICD.

The subscription period opened today, September 23, 2025, and will close on September 30, 2025, for all tranches.

The final offer price will be determined through a book-building process and announced on October 1, 2025.

Listing and Trading on DFM

The admission of ALEC’s shares for trading on the DFM is expected to take place on or around October 15, 2025, pending market conditions and regulatory approvals.

As part of the underwriting agreement, both ALEC and ICD will be subject to a 180-day lock-up period post-listing, during which time they cannot sell their remaining shares, except for certain permitted transfers.

Price Stabilisation

To support the IPO post-listing, ICD has appointed xCube LLC to manage stabilisation transactions involving up to 100 million shares. These transactions aim to help maintain a stable market price during the initial trading period.

Shariah Compliance

The IPO has been certified as Shariah-compliant by the Internal Shariah Supervision Committee of Emirates NBD Bank PJSC, making it accessible to a broad base of Islamic investors.

Key Financial and Advisory Roles

A group of leading banks and advisors has been appointed to manage the IPO:

Joint Global Coordinators and Joint Bookrunners

• Emirates NBD Capital PSC
• J.P. Morgan Securities PLC

Joint Bookrunners

• Abu Dhabi Commercial Bank PJSC (ADCB)
• EFG-Hermes UAE Limited and EFG-Hermes UAE LLC

Independent Financial Adviser

• Moelis & Company UK LLP DIFC Branch

Receiving Banks include Emirates NBD Bank PJSC (Lead Receiving Bank), along with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, and Wio Bank.

Strategic Significance

The ALEC IPO represents one of the most significant construction and infrastructure listings on the Dubai Financial Market in recent years. As Dubai continues to invest heavily in infrastructure, tourism, and mega projects, ALEC’s listing is seen as a strategic move to unlock value for the Investment Corporation of Dubai while offering investors exposure to the region’s fast-growing construction sector.

By opening its capital to individual, institutional, and employee investors, ALEC aims to broaden its shareholder base, strengthen its corporate governance, and position itself for further regional and international expansion.