ALEC Holdings Raises $381M in Dubai IPO, Valued at $1.91B

Dubai, UAE – October 1, 2025: ALEC Holdings, the Dubai-based engineering and construction group, has priced its initial public offering (IPO) at the top of the indicated range, raising $381 million (AED 1.4 billion) in what is now the UAE’s largest construction sector IPO to date.

Strong Investor Demand

The company sold 1 billion shares at $0.38 (AED 1.40) each, implying a market capitalisation of $1.91 billion (AED 7 billion) at listing, according to a statement from ALEC.

The sale represents 20 percent of ALEC’s share capital, all offered by the Investment Corporation of Dubai (ICD), which will continue to hold an 80 percent stake in the group.

The IPO attracted strong demand, generating orders worth $8.1 billion (AED 30 billion), more than 21 times oversubscribed. ALEC also reported one of the highest levels of non-UAE investor participation among recent Dubai listings, reflecting growing international confidence in the emirate’s capital markets.

Shares are expected to commence trading on the Dubai Financial Market (DFM) on or around October 15, under the symbol “ALEC.”

Dividend Policy and Yield

In line with its dividend policy, ALEC announced plans to pay $54.5 million (AED 200 million) in April 2026 and $136 million (AED 500 million) for the 2026 financial year, implying a dividend yield of 7.1 percent at the IPO price.

Subsequent payments will follow a semi-annual schedule, 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.”

A Market Milestone

The IPO marks the first listing by a construction company in the UAE in over 15 years, underscoring ALEC’s strategic importance within the region’s infrastructure and real estate ecosystem.

ALEC, a subsidiary of ICD, has delivered numerous large-scale projects across the UAE and Saudi Arabia, spanning engineering, construction, and project management. Its track record positions it as one of the Gulf’s most prominent players in the sector.

Advisors and Bookrunners

The offering was backed by a strong advisory syndicate. 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 served as independent financial adviser.

With its IPO successfully concluded, ALEC is set to debut on the Dubai Financial Market with significant momentum, reinforcing the strength of Dubai’s capital markets and highlighting investor appetite for leading infrastructure and construction players in the region.